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The Malaysian defence market is a dynamic and growing sector driven by modernization efforts, regional security concerns, and government investment. With a projected CAGR of 8.4% from 2024 to 2028, the market is expected to reach a value of $6.2 billion by 2028.
The Malaysian government prioritizes defence procurement to safeguard national sovereignty and address emerging security threats. The procurement process is overseen by the Ministry of Defence and guided by the Defence Industry Policy, which emphasizes technology transfer, local industry development, and cost-effectiveness.
The Malaysian government procures a wide range of defence products and services, including:
Air combat aircraft
Naval vessels
Land combat vehicles
Cybersecurity solutions
Intelligence, surveillance, and reconnaissance (ISR) systems
The key authorities responsible for Malaysia defence procurement are:
Ministry of Defence (MOD)
Armed Forces Headquarters (MAF)
Defence Industry Development Division (DIDD)
Malaysian Defence Industry Council (MDIC)
Major players in the Malaysian defence procurement landscape include:
Boustead Holdings Berhad
DRB-HICOM Berhad
Sapura Group
Thales Group
Leonardo S.p.A.
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