MELAKA, 23 April 2026 – Malaysia took a significant step towards strengthening its defence self-reliance today with the signing of a Memorandum of Understanding (MoU) to establish a Defence Industry Hub in Jasin, Melaka.
Defence Minister Dato’ Seri Mohamed Khaled Nordin witnessed the signing ceremony on the final day of DSA & NATSEC Asia 2026 between Turkish state-owned defence giant Makine ve Kimya Endüstrisi (MKE), Malaysian company Anzeco Powertech Sdn Bhd, and the Melaka State Government through Melaka Corporation (MCORP).
The Melaka Chief Minister, Datuk Seri Utama Ab Rauf Yusoh, was also present at the event.
The collaboration is expected to attract an investment of approximately USD100 million (RM400 million) and will focus on developing an ammunition manufacturing facility. The project targets 40% local content, which will drive vendor development programmes, create skilled jobs, and facilitate technology transfer to Malaysian industry players.
In his statement, Mohamed Khaled described the MoU as “the initial step in developing the Defence Industry Hub in Jasin, Melaka.”
“This initiative will contribute directly to Malaysia’s defence system while building local capabilities in ammunition production through vendor development, skilled workforce training, and technology transfer,” he added.
The project aligns with the government’s push to reduce reliance on imported defence equipment and to position Malaysia as a growing player in the regional defence industry.
Further details on the timeline and specific components of the factory are expected to be announced in the coming months following the MoU.
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