Nation eyes deeper role in global defence supply chain as local firms expand capabilities

THE nation is aiming to strengthen its position as part of the global supply chain for defence-related components, as the government moves to expand local industry participation in high-value manufacturing and reduce reliance on foreign suppliers.

Defence Minister Datuk Seri Mohamed Khaled Nordin said Malaysia already possesses strong capabilities in software development, integrated circuits and information technology components, which can support its ambition to become a more integrated player in the global defence ecosystem.

“Our local companies such as CTRM (Composites Technology Research Malaysia Sdn Bhd) in Melaka are already involved in the global supply chain for aircraft components.

“Indeed, there are local companies already capable of producing ammunition, aircraft flare systems and ground vehicle systems, and have even proposed producing their own 105 mm artillery guns. This shows that we are moving from being mere agents to becoming recognised component manufacturers,” he said.

He was speaking after launching the Ministry of Defence pavilion at the Defence Services Asia (DSA) and National Security (NATSEC) Asia 2026 exhibition on Monday.

Khaled said the ministry had also mandated that 30 per cent local content be included in defence procurement to create opportunities for domestic innovators to demonstrate their capabilities and expand participation in the industry.

Earlier, Prime Minister Datuk Seri Anwar Ibrahim, when opening the DSA and NATSEC exhibition, called on global defence and aerospace industry players to deepen cooperation with Malaysian manufacturers, in line with the country’s expanding role in the high-value global supply chain.

On operational matters, Khaled said Malaysian Battalion (MALBATT) 850-13 personnel serving under the United Nations Interim Force in Lebanon (UNIFIL) remain on high alert despite a 10-day ceasefire between Lebanon and Israel that came into force last Friday.

“If there are violations of the ceasefire, they are instructed to take protective measures such as staying in bunkers,” he said.

Responding to reports of the death of French troops near the Lebanon border, he said Malaysian forces were currently positioned in a comparatively safer area.

“The Malaysian contingent is positioned in the middle, while Indonesian and French forces are closer to the Lebanon-Israel border. However, we cannot take things lightly as missile and rocket threats can cross borders,” he said. - April 20, 2026