Malaysia is set to launch a series of national defence projects, including the development of “kamikaze drones” and laser defence systems, under the newly introduced National Defence Industry Policy (NDIP).
Defence Minister Datuk Seri Mohamed Khaled Nordin said the initiatives aim to strengthen domestic industrial capacity and reduce dependence on foreign technology.
Key projects include a locally developed satellite to take over national defence services when the current contract expires in 2029, as well as the production of loitering munition systems, also known as kamikaze drones.
“Among the key initiatives are a locally developed satellite, a laser defence system, and building capabilities for the assembly and manufacture of land vehicle chassis,” Khaled said during the policy’s launch at the Malaysia International Trade and Exhibition Centre yesterday.
Other projects include the production of passive radar systems and the development of defence simulators. Khaled added that the government also plans to cultivate local expertise in the assembly, repair, and manufacture of various weapons systems.
He said the success of the NDIP hinges on a comprehensive ecosystem involving government commitment, procurement reforms, effective technology transfer, and strengthened research and development.
A major reform under the policy requires all defence procurements to include at least 30 per cent local content. The Industrial Collaboration Programme (ICP) will also be implemented more aggressively to support local companies capable of leveraging high-value technology.
“Research and development will act as a catalyst for growth, supported by government funding and the ICP, including through the Science and Technology Research Institute for Defence,” Khaled said.

