Ketech Asia Ammunition Plant Hits Full Capacity in Malaysia

Ketech Asia Achieves Full Scale Ammunition Production

Mohd Hanif Ismail - : Feb 10, 2026 - : 9:50 am

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The landscape of Southeast Asian defence manufacturing has reached a significant milestone as Malaysia’s first high-automation ammunition production facility, operated by Ketech Asia Sdn Bhd, officially transitioned to full-scale operations. Located on a 40.4-hectare site in Lipis, Pahang, the RM150 million (US$34.1 million) plant is now running at a yearly capacity of approximately 130 million rounds. This output focuses primarily on 9mm and 5.56mm calibres, serving both the domestic requirements of the Malaysian Armed Forces and burgeoning demand from regional neighbours.

Strategic Expansion into Global Markets

The facility’s operational surge, confirmed in early February 2026, marks the culmination of a development phase that began in 2022. While initial projections in 2025 estimated a 60-million-round annual output, the implementation of three-shift cycles and advanced automation has allowed the company to double that figure. According to reports from Bernama, the plant is designed with the scalability to reach up to 300 million rounds annually, provided raw materials such as propellant powder—currently imported—remain in steady supply. Beyond standard small arms ammunition, Ketech Asia has signaled plans to expand its portfolio to include 7.62mm rounds for sniper rifles and machine guns, as well as 12.7mm heavy machine gun ammunition.

Regional Partnerships and Technology Transfer

A pivotal element of Ketech Asia’s growth is its strategic alliance with the UAE-based EDGE Group. During the International Defence Exhibition and Conference (IDEX 2025) held in February 2025, Ketech Asia signed a follow-up agreement with EDGE subsidiary CARACAL for the localised assembly and manufacturing of the CAR 816 tactical assault rifle. This partnership facilitates a significant transfer of technology, allowing the Pahang facility to produce key components for the 5.56x45mm NATO standard rifle. Sultan of Pahang, Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah, noted during the factory’s inauguration that the ability to sell such high-calibre products abroad would raise the national profile within the international defence community.

Sustaining the ASEAN Defence Ecosystem

The project is a cornerstone of Malaysia’s ambition to reduce its reliance on foreign military imports and establish itself as a regional hub for military technology. Ketech Asia Operations General Manager, A M Maharis Abdul Wahab, stated that Brunei, Singapore, and Cambodia, alongside several Middle Eastern nations, have already expressed interest in the plant's output. By leveraging a 100% local workforce, currently exceeding 120 employees, the company aims to meet its "Vision 2030" goal of becoming an icon for ASEAN military technology. This local-first approach is intended to foster a sustainable defence ecosystem that balances commercial export success with national security priorities.