Malaysia

Anwar: Defence industry policy must be built on transparency and zero tolerance for corruption

The Prime Minister warns that the National Defence Industry Policy will fail unless defence procurement is governed by strict transparency, strong oversight and an uncompromising stand against corruption

Updated 6 months ago · Published on 21 Jan 2026 12:52PM

Anwar: Defence industry policy must be built on transparency and zero tolerance for corruption
Anwar defends a sweeping freeze on defence tenders amid allegations of financial leakages - January 21, 2026

PRIME MINISTER Datuk Seri Anwar Ibrahim has stressed that the National Defence Industry Policy must be anchored on transparent procurement practices and upheld through sound governance and accountability, warning that corruption and commission-taking will undermine the country’s defence capability.

He said the effectiveness of Malaysia’s defence policy depends on the government’s resolve to eradicate corrupt practices at every stage of military asset procurement.

“How can we possibly formulate a defence policy or procure the best weapons if we are still being dragged down by personal interests, commissions and the pursuit of wealth?” Anwar said.

“That is why the freeze continues at the Ministry of Defence, and I also want to align this at the Home Ministry, because there are similarities involving certain agencies that must undergo change,” he added.

Anwar was speaking at the launch of the National Defence Industry Policy at the Malaysia International Trade and Exhibition Centre, where senior government and military officials were present, including Defence Minister Datuk Seri Mohamed Khaled Nordin, Deputy Defence Minister Adly Zahari, Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar and Army Chief General Datuk Azhan Md Othman.

Last Friday, the Prime Minister announced that all procurement decisions involving the Malaysian Armed Forces, the Royal Malaysia Police and related agencies implicated in corruption allegations would be temporarily frozen until procurement procedures fully complied with governance requirements.

Reiterating that position, Anwar said no party should interfere with the decision to freeze all defence procurement tenders involving the Ministry of Defence, which was announced last week following allegations of financial leakages within the armed forces.

“I told them the freeze applies to everything. Those already approved and those not yet finalised will be reviewed. I have asked him himself, the Defence Minister Datuk Seri Mohamed Khaled Nordin, to monitor this from a financial perspective,” he said.

“I stress that this freeze on all procurement must not be interfered with by anyone. It must go through a more transparent process and be accountable to the minister together with the secretary-general and the defence industry,” he added.

Anwar said he believed the procurement process could be conducted more transparently based on professional expertise and the actual needs of the armed forces, areas he acknowledged were outside his own technical knowledge.

“That expertise lies with you, not with me, to determine the type of weapons and equipment required, in what order and within our limitations,” he said.

He pledged full support for the new leadership of the Malaysian Armed Forces once it is decided, particularly in relation to procurement reforms.

“I believe this can be done once the new leadership is decided together with the Defence Minister, and I will give my full backing and support, including what is outlined in the National Defence Industry Policy today. That is my guarantee,” he said.

The Prime Minister cautioned against linking the current leadership crisis within the armed forces to the institution as a whole, stressing that many officers and personnel continue to serve with integrity and professionalism.

“This is a shocking development not only for the country but for the world. We have just spoken about financial scandals, and now we are still dealing with issues of corruption and misappropriation of funds,” he said.

“Certainly, as also mentioned earlier by the Defence Minister, it must not represent all members, whether in the Ministry of Defence or within the armed forces and enforcement agencies,” he added.

Anwar said he hoped the current turmoil, which he described as a “puting beliung” or whirlwind, would soon subside and not tarnish the reputation of the armed forces.

“Hopefully this dark and gloomy episode, described as a ‘whirlwind’ – even though whirlwinds are rare in Malaysia – will not create a negative perception,” he said.

In his speech, Anwar also criticised what he described as the unhealthy habit among some leaders of prioritising personal interests over public duty, noting that such behaviour has spread beyond politics into the civil service and the armed forces.

“With personal interests, how can we ever establish a policy to procure the best weapons if we are still being pulled by personal interests and commissions?” he said.

He expressed confidence in Defence Minister Mohamed Khaled Nordin’s efforts to reform the ministry.

“I have confidence, and I would like to thank Datuk Seri Khaled Nordin for steering this with a strong sense of responsibility and without being defensive, in his effort to cleanse the ministry,” Anwar said.

The Prime Minister said Malaysia’s economic progress was largely supported by the contributions of the armed forces and enforcement agencies that remain on constant alert to safeguard national security.

While expressing gratitude that Malaysia remains peaceful and maintains good relations with neighbouring countries, he stressed that national defence policy would continue to be a top government priority even in times of peace. - January 21, 2026

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