Malaysia’s Defence Ministry has secured RM3.54 billion worth of contracts and industrial collaboration programmes (ICPs) during the Defence Services Asia (DSA) and National Security (NATSEC) Asia 2026 exhibition, despite a temporary freeze on procurement earlier this year.
The total value comprises 12 contracts, four letters of intent (LOIs) worth RM1.01 billion, and eight ICP credit agreements valued at RM1.40 billion.
Defence Minister Datuk Seri Mohamed Khaled Nordin said the number of deals signed this year was lower compared to the previous edition, largely due to a pause in procurement processes.
“We froze all procurement consideration processes for two to three months due to unavoidable circumstances. What was signed reflects only what could be processed during that period,” he said at a press conference following the signing ceremony.
He added that the duration of the contracts will vary depending on the shipbuilding companies and original equipment manufacturers (OEMs) involved.
Despite the slower deal flow, DSA and NATSEC Asia 2026 recorded its highest participation to date, with 1,456 exhibiting companies from 63 countries, up from 1,324 companies representing 60 countries in 2024 — underscoring sustained global interest in Malaysia’s defence and security sector.
The ICP agreements, in particular, are expected to play a key role in strengthening local industry capabilities through technology transfer, supply chain integration and long-term industrial development.
The latest round of deals signals continued defence investment momentum, even as the government recalibrates procurement timelines amid broader fiscal and strategic considerations.
