Efforts by Malaysian defence companies to develop military vehicle chassis locally could help reduce defence procurement costs, raise local content and strengthen the country’s defence manufacturing ecosystem, Defence Minister Datuk Seri Mohamed Khaled Nordin said.
He said vehicle chassis account for about 30% of a land vehicle asset, making the component an important part of the government’s target for at least 30% local content in defence acquisitions.
Mohamed Khaled welcomed local defence supplier High Point Worldwide Sdn Bhd’s initiative to develop two locally produced military vehicle chassis, which are expected to be completed next year.
Beyond lowering procurement costs, he said domestic chassis production and a stronger local vendor network could create opportunities for Malaysian defence companies to expand into overseas markets.
The push forms part of the National Defence Industry Policy, which seeks to reduce reliance on foreign suppliers while strengthening domestic technology, expertise and supply chains.
Mohamed Khaled also said the Defence Ministry will prioritise local companies for maintenance, repair and overhaul work once existing foreign contracts or warranty periods expire. Eighteen foreign companies currently hold MRO contracts worth from hundreds of millions to billions of ringgit.
