SEREMBAN: The government will continue to support the local defence industry but demands greater transparency in procurement procedures, says Datuk Seri Anwar Ibrahim.
He said the government can no longer follow previous procedures that resulted in exorbitant prices due to corruption and agent involvement.
“We are going to spend significantly to strengthen our air, land and maritime defence, including in the Melaka Straits and South China Sea.
“We will support the local industry where it has expertise, such as armoured vehicles, but we need greater transparency as our record is not something to be proud of,” he said when opening the Mildef International Technologies Sdn Bhd plant in Seremban.
Anwar said a lack of transparency creates opportunities for corruption and for third parties to make excessive commissions.
He said Malaysia, despite rapid growth and significant investment in defence assets, has been “weak” in procurement.
“As we all know, the LCS (Littoral Combat Ship) saga, where the vessels never arrived, has been a joke for years,” he said.
Anwar stressed that procurement must involve full cooperation from the army top brass and technical experts.
He said this is crucial as there will always be those looking to exploit situations for personal gain.
Anwar recent arrests of 10 individuals, including five senior Armed Forces officers, over suspected involvement in a smuggling syndicate.
He said when previously informed that the navy lacked enough vessels for patrolling, including safeguarding oil rigs, he immediately contacted Turkish president Recep Tayyip Erdogan.
“I asked if Turkey had ships ready and Erdogan said they did. The good news is we will begin receiving them this year and next, and the cost will be lower due to a government-to-government deal,” he said.
He added that such arrangements allow for extra conditions such as technology transfer and training.
Anwar said Malaysia will also use government-to-government deals for defence assets wherever possible.
“We need to do this as we increase defence spending. This is important to ensure our armed forces, police and enforcement agencies are always ready to face any possibility,” he said, adding that peace should not be taken for granted.
Mildef International Technologies Sdn Bhd managing director Datuk Seri Mohd Nizam Mohd Kasa said the company, set up 20 years ago, now has 30 local vendors.
“We started small and faced many challenges, but with determination, today we have proven we can produce locally made defence products to international standards.
“Setting up this plant is a long-term strategy to reduce dependence on foreign products and technology,” he said.
This aligns with the Defence Ministry’s white paper policy on self-reliance.
Mohd Nizam said with the plant’s capabilities, authorities can shift from purchasing defence products and technology abroad to developing and manufacturing them domestically with the local industry and government.
The plant can produce 80 armoured vehicles and related products a year.
He said research and development will continue with local institutions to produce new products and technology.
Given the current geopolitical situation, he is confident this will provide opportunities to export to Asean, the Middle East, Europe and beyond.
“We have signed cooperation agreements with foreign companies in Indonesia, the Philippines, Vietnam and the Middle East to expand our export market,” he said.
He added that Mildef, with its current capacity and facilities, is confident of meeting global demand.
The company also holds international military standard certifications and established compliance practices.
