PORT DICKSON: Malaysia conducts its due diligence before entering into government-to-government (G2G) defence procurement deals to ensure identified countries are trusted and willing to ensure technology transfer, says Datuk Seri Mohamed Khaled Nordin.
The Defence Minister said these were among several criteria laid out when it came to G2G defence procurements.
"It has to be countries that can be trusted and also those prepared to conduct technology transfers which in turn further develops Malaysia's defence industry," he told reporters after a programme with army personnel here on Sunday (July 26).
Mohamed Khaled added that it is not just better procurement prices achieved through the G2G process, but also a guaranteed supply of purchased assets.
"G2G procurements are more transparent alongside better prices due to the lack of a middleman," he said.
He emphasised that while the government only makes the purchases, the armed forces themselves identify and determine the specifications of the assets required.
Mohamed Khaled said several projects have already been identified to undergo the G2G procurement process.
According to him, two memoranda of understanding have been signed with Turkiye and South Korea.
"Several other countries have also expressed interest, such as Italy and France," he said.
Previously, Prime Minister Datuk Seri Anwar Ibrahim said Malaysia reduced the procurement costs of its Littoral Mission Ships by 15% through direct G2G negotiations with Turkiye.
Anwar said he had raised the proposal with Turkish President Recep Tayyip Erdogan in one of their conversations.
"To this, Erdogan replied that it was a very good proposition and we have since cut costs by about 15%," Anwar said during a programme with army personnel on July 24.
