PETALING JAYA: Main players in the defence industry said the newly launched National Defence Industry Policy (DIPN) will ensure self-reliance and long-term strategic sustainability for a sector that has long depended on foreign resources.
The Armed Forces Fund Board (LTAT) said the DIPN aligns closely with its Long-Term Strategic Roadmap, which positions Boustead Holdings Berhad as the principal driver of Malaysia’s defence industry development.
LTAT chief executive officer Mohammad Ashraf Md Radzi pointed out that Boustead is a wholly owned subsidiary of LTAT, which manages the retirement savings of armed forces members.
"Boustead serves as a strategic player to build industrial capability, absorb technology through disciplined partnerships, and ensure that policy aspirations translate into practical outcomes," said Mohammad Ashraf.
Airod Sdn Bhd, which handles maintenance, repair and overhaul (MRO) services, said the DIPN provides industrial reliance. Airod chief executive officer Major-General (Rtd) Datuk Ibrahim Bahari said the company has ready scalable MRO infrastructure and a highly trained Malaysian technical workforce.
"We have also established international partnerships enabling technology transfer, localisation and in-country sustainment. This comprehensive readiness directly supports the DIPN objective to ensure that defence assets are sustained locally,"
Ibrahim said. He added that Airod has a proven track record, having provided MRO services to foreign air forces including those of the US and Indonesia.
Universiti Kebangsaan Malaysia defence expert Prof Dr Salawati Mat Basir said two advisory councils under the DIPN will play critical roles in coordination and governance.
She said the councils should ensure the RM21.74bil national defence spending allocation in 2026 directly supports domestic industrial growth.
"Buying foreign defence weaponry may be cost-effective, but local procurement is a long-term economic gain," she said.
Launched on Jan 21, the DIPN aims to strengthen innovation in critical areas such as maritime, aerospace and cyber systems.
The policy includes a minimum 30% local content requirement for all defence procurement and mandates that all MRO activities be carried out by local companies.
