Defence ties between Malaysia and the US, which has largely remained low profile, is set to receive a fillip with Malaysia planning to increase spending on arms as part of its defence modernization plans and in view of regional tensions. However, US defence firms face a major challenge as South Korea has emerged as a major arms exporter to countries in the region.
After a multi-year lull, Malaysia’s defense budget is to increase consistently over the next few years to reach US$5.2 billion in 2027. High on the wish list of the country’s military are six units of Boustead Naval Shipyard’s second-generation patrol vessel – littoral combat ships (SGPV-LCS) and four littoral mission ships (LMS), and ground-launched anti-ship cruise missiles.
Weapons made by US defence contractors remain in high demand in Malaysia, but the growth of other arms exporters, especially South Korea, has made the market increasingly competitive in recent years. With Malaysia loosening its purse strings, US defence contractors will be hopeful of making fresh inroads into the market, but they will have to contend with South Korea, which has grown to become one of Malaysia’s top suppliers. Earlier this year, Malaysia decided to buy 18 FA-50 fighter jets made by Korean Aerospace Industries for a total cost of US$910 million. Industry analysts expect more arms deals involving the two countries.
According to Stockholm International Peace Research Institute (SIPRI), Southeast Asian nations are increasingly turning to South Korea for its weapons; countries in the region bought nearly US$2 billion of military equipment manufactured by South Korean companies between 2017 to 2021. Last year, Malaysia and South Korea signed a defense industry agreement, becoming the fourth country in the region to do so, after Indonesia, Thailand, and the Philippines. The popularity of South Korea arms in the region and elsewhere is not only because they are significantly less expensive than weapons made by companies in countries such as the US, UK, France or Germany; the country is well known for the high quality of its military products and the willingness to conduct technology transfers through defense industrial cooperation.
Defence cooperation between Malaysia and the US has a long history, including training courses for Malaysian officers in US military colleges, and joint military exercises. In addition to providing the Malaysian Armed Forces (MAF) more than US$1 million annually for military training and education courses, the US also gives grants worth nearly US$200 million in grants to the MAF to enhance maritime domain awareness. In March 2021, The Royal Malaysian Navy (RMN) launched its first ever Unmanned Aerial System (UAS) Squadron – Squadron 601 – after taking delivery of the first batch of six ScanEagle UAVs that were donated by the United States under the Maritime Security Initiative (MSI) programme. The UAVs are produced by Boeing Insitu.
In November 2022, U.S. and MAF strengthened their maritime security cooperation by participating in Cooperation Afloat Readiness and Training (CARAT) in Malaysia. The CARAT programme, which has been held in Southeast Asia for almost three decades, involved a U.S. Navy P-8A Poseidon maritime patrol and reconnaissance aircraft providing airborne training featuring the first LINK-16 military tactical data link network engagement between the Royal Malaysian Air Force Air Defense Squadron and a U.S. Navy P-8A since the installation of the U.S.-funded Link-16 ground stations in September last year. In addition, the US Naval Special Warfare’s Unmanned Aircraft Systems unit and the littoral combat ship USS Charleston conducted joint maritime security training with the Royal Malaysian Navy and Air Force. In April 2021, the Malaysian Air Force had conducted massive joint drills alongside the USS Theodore Roosevelt Carrier Strike Group in the South China Sea. In September 2021, Lockheed Martin was awarded a US $25 million contract for the Malaysia Ground Based Radar System. The work is expected to be completed by Sept. 30, 2025. In April last year, ThalesRaytheonSystems, a joint venture between Raytheon and Thales Group, won a contract to upgrade the Malaysian Air Defense Ground Environment system, including the creation of an air defense sector operations center and installation of a new long-range air defense radar. ThalesRaytheonSystems had installed the first automated command and control system for the RMAF in Butterworth.
Headquartered in Singapore with reporters spread across all major regions, GBP Aerospace & Defence is a leading media house that publishes three publications that serve the aerospace and defence sector - Asian Defence Technology, Asian Airlines & Aerospace and Daily News. Known industry-wide for quality journalism, GBP Aerospace & Defence is present at more international tradeshows and exhibitions than any other competing publication in the region.
For over three decades, our award-winning team of reporters has been producing top-notch content to help readers stay abreast of the latest developements in the field of commercial aviation, MRO, defence, and Space.
Copyright 2024. GBP. All Rights Reserved.