Anwar launching the National Defence Industry Policy (DIPN) at Mitec. Looking on are (from left) Adly Zahari, Mohamed Khaled, Shamsul Azri and Azhan. The DIPN aims to strengthen Malaysia’s defence capabilities while driving local innovation and self-reliance in the defence industry. — AZMAN GHANI/The Star
KUALA LUMPUR: Malaysia has entered a new era of local defence development with the launch of the National Defence Industry Policy (DIPN), seen as a key driver of the Defence Ministry’s strategic transformation.
Defence Minister Datuk Seri Mohamed Khaled Nordin said the policy forms the foundation for the ministry’s transformation.
“Through DIPN, we are not only strengthening the country’s defence capabilities but also driving local innovation and technology in the defence industry,” he said at the launch, held at Malaysia International Trade and Exhibition Centre (Mitec) yesterday.
The DIPN was launched by Prime Minister Datuk Seri Anwar Ibrahim.
Other attendees included Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar, Deputy Defence Minister Adly Zahari and Army Chief Jeneral Datuk Azhan Md Othman.
Mohamed Khaled said the main objective of DIPN is to reduce reliance on foreign technology while strengthening local capabilities through close collaboration between the public and private sectors, shifting the focus from maintenance to high-value manufacturing and technological innovation.
“We are aware that today’s world faces increasingly complex, fragile, and unpredictable security challenges.
“It would be a huge loss if the substantial annual allocations to the Ministry of Defence are not fully utilised to develop a homegrown defence industry capable of standing on its own.”
DIPN is designed to strengthen self-reliance, innovation, and technological advancement in the defence sector, focusing on critical areas such as maritime, aerospace, military vehicles, weaponry and ammunition, cyber and electromagnetic systems, as well as emerging technologies, in line with the Defence White Paper 2020–2030 and the National Industry Masterplan (NIMP) 2030.
The policy will be implemented in four phases: foundation setting and policy development (2025–2026), industrial strengthening and technological advancement (2026–2027), expansion of defence industry capabilities (2028–2029), and full global competitiveness from 2030 onwards.
Among the key reforms is the introduction of a minimum 30% local content requirement for all defence procurement, as well as the mandate that all maintenance, repair and overhaul (MRO) activities must be carried out by local companies, except during warranty periods, which remain under original equipment manufacturers (OEMs).
“Any local company that fails to innovate, increase local content, or reduce costs may have their MRO contracts terminated, as the country’s interests are our top priority,” he said.
On technology transfer, Mohamed Khaled said the Industrial Collaboration Programme (ICP) will be implemented more aggressively and selectively, prioritising only local companies capable of utilising the technology to produce high-value products.
As part of DIPN’s rollout, the Malaysia Defence Industry Portal (PIPM) was also introduced as an integrated digital platform serving as an information hub for the national defence industry ecosystem.
“The portal makes it easier for local companies to access technology transfer opportunities, participate in the Industrial Collaboration Programme (ICP), and develop their R&D and innovation capabilities.
“It will serve as a one-stop centre for industry players to collaborate, access technology, and develop competitive defence products,” he added.
The DIPN launch also marks the start of the National Defence Projects (PPN), which focuses on high-impact projects, technology transfer, and increasing the value of the local supply chain.
Mohamed Khaled highlighted several national defence projects, including the development of local defence satellites, laser defence systems, ground vehicle chassis manufacturing capabilities, weapon systems, passive radar, loitering munition systems (kamikaze drones), and defence simulators.
He explained that these initiatives are not intended to produce fully operational weapons systems in the short term, but rather as a starting point to develop local components and services, allowing Malaysian companies to participate meaningfully in the defence industry supply chain.
“This is a strategic investment for the sovereignty, security, and future of the nation,” he said.
