MoUs signed to enable technology transfer, localisation and domestic capability development across key defence domains
KUALA LUMPUR, 21 January 2026 – Boustead Holdings Berhad (“Boustead”), a strategic investment holding company owned by the Lembaga Tabung Angkatan Tentera (LTAT), today announced the signing of a series of strategic Memorandum of Understanding (MoUs) with leading defence technology partners from Turkey, Indonesia, and China, reinforcing Malaysia’s long-term agenda to develop a resilient, self-reliant and technologically advanced national defence industry.
The collaborations were formalised in conjunction with the launch of Malaysia’s Dasar Industri Pertahanan Negara (DIPN), and collectively span small arms and ammunition manufacturing, armoured land systems, high-energy laser technologies and precision-guided systems, with a strong emphasis on technology transfer, localisation and domestic capability building.
Malaysia–Turkey: Strengthening Land Systems and Armoured Vehicle Capabilities
Under a strategic partnership with Otokar, Turkey’s largest land systems exporter, to explore cooperation in support of the Malaysian Armed and Security Forces’ armoured vehicle and land systems requirements.
The collaboration covers the promotion, localisation and potential production of tracked and wheeled armoured platforms in Malaysia, as well as long-term repair, maintenance, overhaul and modernisation (RMOM) support for existing and future land systems. This initiative builds on the broader Government-to-Government defence cooperation framework between Malaysia and the Republic of Türkiye.
Indonesia–Malaysia: Localisation of Advanced Small Arms and Ammunition Manufacturing
Boustead also entered a strategic partnership with PT Komodo Armament, to explore the establishment of local production capabilities in Malaysia for lightweight polymer ammunition, polymer-based assault rifles, and single and double-base propellants, engineered specifically for tropical operating environments.
The collaboration aims to reduce reliance on foreign-sourced materials by leveraging locally available raw inputs, enhancing supply-chain security and ensuring continuity for Malaysia’s defence forces while positioning the country as a regional manufacturing hub for advanced small arms and ammunition.
China–Malaysia: High-Energy Laser Technology Localisation
In parallel, Boustead signed an MoU with Huanghu Science and Technology Co., Ltd. to explore the localisation of high-energy laser systems in Malaysia.
The collaboration focuses on joint research and development, knowledge exchange and feasibility studies for the production, manufacturing and development of high-energy laser technologies, supporting Malaysia’s ambition to develop advanced, next-generation defence capabilities through structured technology transfer and domestic talent development.
China–Malaysia: Precision-Guided Kit (PGK) Systems Capability Development
Boustead further signed an MoU with Chengdu Hanguang Sifang Technology Co., Ltd. to explore cooperation in the localisation of PGK technologies in Malaysia.
This collaboration seeks to advance local engineering expertise, system integration capabilities and applied R&D, reinforcing Malaysia’s long-term defence modernisation roadmap while supporting domestic industry participation in advanced weapons systems development.
Strategic National Alignment
Commenting on the series of partnerships, Boustead Group Managing Director Dato’ Indera Ir. Dr. Hj. Ahmad Sabirin Arshad FASc, said: “These strategic collaborations reflect Boustead’s role as a national enabler in advancing Malaysia’s defence industrial ecosystem.
“By partnering with proven international technology leaders, we are accelerating the transfer of critical capabilities into Malaysia—strengthening self-reliance, enhancing operational readiness, and ensuring that our defence forces are supported by resilient, locally anchored supply chains. This approach is fully aligned with the objectives of the Dasar Industri Pertahanan Negara (DIPN) and Malaysia’s long-term security interests.
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About Boustead Holdings Berhad
Boustead Holdings Berhad is a diversified Malaysian investment holding company wholly owned by the Armed Forces Fund Board of Malaysia (LTAT). The Group is undergoing a comprehensive restructuring and rejuvenation programme to strengthen core businesses, enhance operational resilience and accelerate sustainable value creation in alignment with national priorities and Malaysia’s defence and security agenda.
About Otokar
Otokar, established in 1963, is Türkiye’s largest land systems exporter and a global supplier of tactical wheeled and tracked armoured vehicles. With over 33,000 military vehicles in service across more than 40 countries, Otokar is a long-standing supplier to NATO and United Nations forces.
About PT Komodo Armament
PT Komodo Armament Indonesia is Indonesia’s first and only private defence company manufacturing law-enforcement and military weapons and ammunition. Operating under the supervision of Indonesia’s Ministry of Defence, the company produces a wide range of NATO-standard firearms and ammunition, supported by advanced manufacturing facilities in Bekasi, West Java.
About Huanghu Science and Technology Co., Ltd.
Huanghu Science and Technology Co., Ltd. is a China-based advanced technology company specialising in high-energy laser systems and applied defence technologies, with strong capabilities in research, system integration and advanced manufacturing.
About Chengdu Hanguang Sifang Technology Co., Ltd.
Chengdu Hanguang Sifang Technology Co., Ltd. is a China-based defence technology company specialising in precision-guided systems and advanced military technologies, supporting defence modernisation through innovation-driven solutions.
