Defense Minister (MENHAN), Datuk Seri Mohamed Khaled Nordin, when commenting after officiating the Ministry of Defense (MINDEF) Contract Signing and Memorandum of Understanding (MoU) Exchange Ceremony held in conjunction with the DSA and NATSEC Asia 2026 exhibition at the Malaysia International Trade and Exhibition Centre (MITEC), Kuala Lumpur, said that Malaysia’s primary focus is shifting from being a buyer to one capable of sustaining, maintaining, upgrading, producing components, and ultimately developing its own defense systems in todays complex strategic environment.

To ensure this can be achieved, the Industrial Cooperation Programme (ICP) signed by eight companies at the event is among MINDEF's strategies towards developing sustainable and competitive local defense technology innovations, thus reducing dependence on foreign countries.

The ICP is an industry collaboration initiative that requires foreign companies to deliver value returns to the country, including technology transfer, local vendor development, workforce upskilling, high-value employment opportunities, and access to global supply chains

MENHAN during the press conference at MITEC, Kuala Lumpur, yesterday.

He explained the ICP serves as a key instrument in enhancing the capabilities of local defense industry companies through knowledge and technology transfer, enabling them to contribute their expertise and capabilities to national development.

“ICP is a grant given by the government to any company that is eligible to receive knowledge transfer so they are able to strengthen their participation in the national defense industry.

“This effort aligns with the goal of MINDEF to support and develop local companies so they can contribute to our success in implementing the National Defense Industry Policy (DIPN).

“In order to meet the national defense and security needs, there are several things we need to ensure and one of them is our ability to manufacture products such as rockets, missiles and drones ourselves,” he said during a press conference yesterday.

(from the left) Executive Director of Barincorp Sdn. Bhd, Mohd Najib Abdul Rashid; Managing Director of Rimbun Emas Defence System Sdn. Bhd, Muhammad Talhah Zainol; Chief of the Armed Forces, General Datuk Malek Razak Sulaiman; Minister of Defense, Datuk Seri Mohamed Khaled Nordin; Deputy Minister of Defense, Adly Zahari; Secretary-General of the Ministry of Defense, Datuk Lokman Hakim Ali; Director of Jawaghih Sdn. Bhd, Syed Zulfahmi Syed Mustafa and Director of Traumland Sdn. Bhd, Captain (Rtd) Halim Hashim Baba.

The ceremony was also attended by Deputy Minister of Defense, Adly Zahari; Chief of Armed Forces, General Datuk Malek Razak Sulaiman; Secretary-General of the Ministry of Defense, Datuk Lokman Hakim bin Ali; Top Management of the Ministry of Defense and Malaysian Armed Forces (ATM).

During the ceremony, a total of 24 strategic instruments were signed with a total value recorded at around RM3.542 billion, involving 12 procurement contracts, four Letters of Intent (LOI) and eight ICP Letters of Offer.

The contract and ICP signing proceeds are worth RM3.54 billion.

The signing of contracts, LOIs and ICP offerings delivers strategic benefits to the nation, including enhanced readiness and capability of ATM to remain relevant in current threats, strengthening of the local defense industry, and advancement of the nation towards self-reliance.

MENHAN also stressed that the government is aware that the challenges of wars in the future will involve more highly evolved systems and technology, so the country must be prepared by developing more local companies to strengthen its independence.