Kuala lumpur: Malaysia's defence policy has consistently prioritized self-reliance through the development of indigenous niche defence equipment. Both the 2020 Defence White Paper and the 2025 Midterm Review have emphasized the importance of utilizing the local defence industry to enhance innovation and the acquisition of domestically produced products for the Malaysian Armed Forces.

According to BERNAMA News Agency, the Minister of Defence, in his New Year address on January 12, 2026, reiterated the significance of supporting and advancing the local defence industry to meet the unique equipment demands of the Malaysian Armed Forces. A National Defence and Security Industry Policy is expected to be launched later this week, further underscoring the commitment to this cause.

However, Malaysian defence industry players are encouraged to leverage ASEAN Defence Ministers Meeting (ADMM) to foster regional defence industry collaboration. This approach aims to achieve economies of scale in the development and sharing of common defence technologies among ADMM members. Malaysia's successful tenure as ASEAN Chair in 2025 has established a solid foundation for enhancing cooperation among ASEAN nations.

ASEAN has already established a mechanism to promote regional collaboration in defence industry research, development, innovation, and production through the 'Concept Paper on the Establishment of ASEAN Defence Industry Collaboration' (ADIC) launched in 2011. This initiative aims to strengthen defence ties among ASEAN members and initiate regional economy-of-scale acquisitions of defence assets and technologies.

While some ASEAN members have initiated bilateral defence industry collaborations, such as Malaysia's procurement of CASA/IPTN CN-235 aircraft from Indonesia and a submarine rescue ship from Singapore, there is potential for more extensive regional cooperation. Despite the strategic advantages of ADIC, progress has been slow due to concerns about national sovereignty, varying military doctrines, and geopolitical alignments among ASEAN members.

Nonetheless, ADMM can strategize regional defence industry collaboration by building on successful cooperation in non-traditional security issues, such as humanitarian and disaster rescue operations, counter-terrorism, and anti-piracy tasks. By focusing on the development of common regional equipment for humanitarian operations, ADMM can enhance joint operations in disaster areas.

This initiative could serve as a catalyst for rejuvenating regional defence industry collaboration, potentially leading to a more unified ASEAN Community and contributing to peace and security in Southeast Asia. For Malaysia's local defence industry players, ADMM collaboration offers opportunities for increased demand, cost advantages, and access to the international defence equipment market.