Malaysia bars foreign firms from most defence MRO work, urging local partnerships

During a visit to the local defence contractor High Point Worldwide Sdn Bhd, Defence Minister Mohamed Khaled Nordin announced that, aside from work covered by warranties, all maintenance, repair and overhaul contracts will be removed from foreign providers. He said 18 foreign companies are presently engaged in MRO tasks valued from RM100 million up to RM1 billion, and they must either partner with Malaysian firms or assist in creating domestic enterprises.

The government will also enforce a minimum of 30 percent local content for selected defence procurements, a rule that will extend to upcoming acquisitions such as KAI fighter jets or a multi-role combat aircraft. Nordin argued the measure is essential for bolstering Malaysia’s industrial base and preventing dependence on imported components, even for simple items like screws. He highlighted the country’s technical universities and skilled graduates as assets for building a self-reliant defence sector.