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DSA 2022: Weak appetite in Malaysia for defence procurement

25th March 2022 - 00:14 GMT | by Dzirhan Mahadzir in Kuala Lumpur

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Introduction of the first Littoral Combat Ship, being constructed by Boustead, will be at least six years late. (Photo: Gordon Arthur)

Minimal quantities of defence procurements are proceeding under Malaysia's current fiscal and political environment.

It is clear that major defence procurements will remain on hold in Malaysia until after a looming national election – which must be called by May 2023 – and because of the fiscal impact of COVID-19. Even after that, however, Malaysia’s fiscal situation may still constrain any major spending.

Malaysia’s previous Perikatan Nasional government carried out tenders for two maritime patrol aircraft and three MALE UAVs in 2020, and 18 light combat aircraft in 2021. However, none of these tenders have been decided and they are still said to be in the evaluation stage.

Tellingly, the government continues to hold

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