Kuala lumpur: Malaysia has signed memoranda of understanding (MoUs) with Turkiye and South Korea to undertake government-to-government (G2G) defence procurement, said Defence Minister Datuk Seri Mohamed Khaled Nordin. He said the mechanism is a new approach that will be adopted for selected defence procurement projects, with several other countries, including Italy and France, also proposing that acquisitions be carried out through the same method.
According to BERNAMA News Agency, specific projects have been identified for implementation on a G2G basis. Previously, all companies, whether original equipment manufacturers (OEMs), agents, or others, could participate in open tenders. This time, however, procurement will be carried out through G2G arrangements. Two MoUs have already been signed to facilitate this approach.
Prime Minister Datuk Seri Anwar Ibrahim stated that the government had successfully reduced the cost of acquiring Littoral Mission Ships (LMS) by 15 per cent through direct negotiations between the governments of Malaysia and Turkiye. The G2G approach was introduced to eliminate reliance on agents, which had previously driven up the cost of acquiring the country's defence assets.
Meanwhile, Mohamed Khaled noted that the approach not only enables the government to secure more competitive prices but also guarantees supply through the commitment of the supplier country's government. He added that G2G procurement is expected to ensure a more transparent process while offering better prices by eliminating intermediaries, thereby enhancing the effectiveness of the country's defence assets.
Mohamed Khaled emphasized that the specifications required by the Army, Navy, or Air Force are determined collaboratively, ensuring that the government purchases equipment in alignment with the services' needs. He further highlighted that threats to national security now include a wide range of hybrid threats targeting society, public thinking, and perceptions, in addition to traditional armed conflict.
The Defence Minister stressed the importance of public awareness regarding national security threats, which now encompass social media attacks and disruptions to critical infrastructure. He emphasized that the responsibility of defending the nation should not rest solely with the Malaysian Armed Forces, but be shared with the public. The Whole-of-Nation Defence (HANRUH) concept introduced by the government aims to cultivate a culture of shared responsibility for national defence among the public.