‘Malaysia remains a neutral country for defence procurement’


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KUALA LUMPUR: Malaysia is not dependent on a single power bloc or specific supplier for its defence procurement, says Datuk Seri Mohamed Khaled Nordin (pic).

The Defence Minister said the approach is aimed at safeguarding the country’s national security interests.

“The Defence Ministry remains committed to ensuring that the nation’s defence procurement strategy is implemented based on national security interests and is not dependent on any single power bloc or specific supplier,” he said in a parliamentary written reply.

He said this is in line with Malaysia’s neutral and non-aligned foreign policy while taking into account the increasingly challenging global geopolitical environment.

Among the ministry’s guiding principles, he said, are diversifying procurement sources and adopting government-to-government procurement arrangements to ensure greater supply chain assurance, accountability and reduced risks of unilateral disruptions or contract cancellations.

Another key consideration, he added, is safeguarding the operational independence of the Armed Forces by ensuring that procured assets are not subject to conditions or restrictions that could compromise national security.

In addition, the ministry continues to strengthen its risk assessment process for all major procurements by taking into account factors such as geopolitical stability, export restrictions, the sustainability of logistics support and supply chain resilience, he said.

The government, he added, will continue strengthening the implementation of the National Defence Industry Policy through technology transfer and the development of the domestic defence industry.

His assurance comes following Norway’s revocation of an export licence for Naval Strike Missiles intended for the Royal Malaysian Navy’s Littoral Combat Ships, despite the supply contract having been signed in 2018.

Following the cancellation, the Defence Ministry issued a notice of demand seeking over RM1bil in direct and indirect losses. The government also decided to halt all future defence procurement and contracts involving Norway.

In a separate parliamentary written reply, the ministry said the RM150mil contract awarded to Ketech Asia Sdn Bhd would help ensure a stable and resilient supply of ammunition for the Armed Forces and government security agencies.

The three-year contract covers the nationwide supply of 9mm and 5.56mm small-arms ammunition to government agencies.

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