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Anwar Ibrahim Calls for Transparency in Defence Procurement, Pledges Support for Local Industry

Seremban, August 23, 2025 – The Europe Today: Prime Minister Datuk Seri Anwar Ibrahim has reaffirmed the government’s commitment to strengthening Malaysia’s defence sector while stressing the urgent need for transparency in procurement processes.

Speaking at the opening of the Mildef International Technologies Sdn Bhd plant in Seremban, Anwar said the government will no longer tolerate past practices that led to inflated prices, corruption, and excessive commissions through third-party agents.

“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.

Citing the long-delayed Littoral Combat Ship (LCS) project as a “national embarrassment,” Anwar underlined that future procurement must involve the full cooperation of military leadership and technical experts to prevent abuses and inefficiencies.

He also referred to the recent arrests of 10 individuals, including five senior Armed Forces officers, suspected of involvement in a smuggling syndicate, noting that such cases underscore the need for accountability.

Anwar disclosed that, in response to the navy’s shortage of patrol vessels, he had directly engaged Turkish President Recep Tayyip Erdogan, resulting in a government-to-government agreement that will see Malaysia receive ships at lower costs, with provisions for technology transfer and training.

“Wherever possible, we will pursue government-to-government arrangements. This ensures better value, builds local expertise, and safeguards national interests,” he said, adding that peace and security must not be taken for granted as defence spending rises.

Meanwhile, Mildef International Technologies managing director Datuk Seri Mohd Nizam Mohd Kasa said the new facility would enable Malaysia to reduce reliance on foreign products and technology, in line with the Defence Ministry’s white paper on self-reliance.

With the capacity to produce 80 armoured vehicles annually, the company has partnered with local institutions for research and development and established cooperation agreements with firms in Indonesia, the Philippines, Vietnam, and the Middle East to expand exports.

“From humble beginnings, we have proven that Malaysia can produce defence products to international standards. Our focus is not only on meeting domestic needs but also on positioning ourselves in global markets,” Mohd Nizam said.

He added that Mildef’s certifications and compliance with international military standards ensure it can meet both regional and international demand.