Overhauled defence policies to benefit local industry, says Mohamed Khaled

Published on 21 Jan 2026 2:32:39 PM


The Defence Ministry will no longer allow original equipment manufacturers (OEMs) to handle maintenance, repair, and overhaul (MRO) work on defence assets after warranty periods expire, under reforms announced Wednesday (Jan 21).

Defence Minister Datuk Seri Mohamed Khaled Nordin said all post-warranty MRO must be done by local companies, as part of the new National Defence Industry Policy (DIPN), which also mandates a minimum 30% local content for defence procurements.

Khaled stressed that local firms must innovate, improve efficiency, and increase local content, or risk contract termination, with terminated contracts re-tendered to other capable local firms.

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