Kuala lumpur: The government today launched the National Defence Industry Policy (NDIP), a long-term strategic plan to reduce Malaysia's dependence on external parties in matters of security and defence, in addition to building a self-reliant, sustainable, and resilient local defence industry. Defence Minister Datuk Seri Mohamed Khaled Nordin emphasized the necessity of strengthening Malaysia's defence capabilities in response to an increasingly complex and uncertain global security landscape.
According to BERNAMA News Agency, Mohamed Khaled highlighted the importance of fully utilizing the high allocation channelled to the Ministry of Defence annually to develop a strong and competitive domestic industry. He made these remarks during the NDIP launch ceremony, which was officiated by Prime Minister Datuk Seri Anwar Ibrahim, reflecting the government's highest commitment to strengthening the country's defence industry ecosystem.
Also present at the ceremony were Deputy Defence Minister Adly Zahari and Army Chief Gen Datuk Azhan Md Othman. Mohamed Khaled noted that the success of NDIP depends on building a comprehensive ecosystem supported by government commitment, defence procurement policy reforms, effective technology transfer, and strengthened research and development (R and D).
Key reforms outlined in the NDIP include setting a minimum local content of 30 per cent for each defence procurement and ensuring all maintenance, repair, and overhaul (MRO) activities are carried out by local companies, except during warranty periods, which can only be handled by original equipment manufacturers (OEMs). He warned that local companies failing to innovate or reduce costs risk losing their MRO contracts due to the prioritization of national interests.
In terms of technology transfer, the Industrial Collaboration Programme (ICP) will be more aggressively implemented, focusing on local companies capable of leveraging technology and producing high-value products. Mohamed Khaled also underscored the critical role of R and D in driving the defence industry's growth, supported by government funds and the ICP, including through the Science and Technology Research Institute for Defence (STRIDE).
With the NDIP launch, the Ministry of Defence introduced the Defence Industry Portal, a platform for ICP applications, R and D grants, and technology offerings related to the defence sector. Mohamed Khaled also announced forthcoming national defence projects, such as developing local defence satellites, defence laser systems, ground vehicle chassis manufacturing capabilities, weapons systems, passive radars, loitering munition systems (kamikaze drones), and defence simulators.
He clarified that the initiative aims not to produce a complete weapons system immediately but to develop local components and services, enabling Malaysian companies to participate significantly in the defence industry supply chain. "This is a strategic investment for the sovereignty, security, and future of the country," he stated.