DEFENCE INDUSTRY.

Developing an indigenous defence sector makes sense for Malaysia in theory. For
starters, a strong defence sector implies that our Armed Forces will be less reliant on foreign
suppliers, potentially saving the government money on costly procurements. Second, a well-
developed defence industry sector may create many jobs and contribute to the nation's
economic industrialisation. Third, if its products are exported to other countries, it can benefit
from foreign exchange gains.
However, developing an indigenous defence industry is extremely difficult because to
the amount of capital that must be committed, the personnel that must be developed, and the
competitiveness within the weapons business. Furthermore, the products must be of excellent
quality because the end customers are members of Malaysia's Armed Forces, who would rely
on these products during times of war or armed conflict. Although Malaysia had a goal to
establish an indigenous defence industry during Prime Minister Mahathir Mohamad's first
term in power (1981-2003), the reality is that, despite certain advances, we are still far from
being able to develop a really dynamic and capable defence sector.
It is not difficult to identify our country's flaws. First, there is a continual shortage of
human expertise, particularly STEM professionals, and possibly even more so in the defense-
industrial sector. Second, there is minimal use of the R&D capabilities found in local
institutions and the corporate sector to support the country's defense-industrial needs. Third,
the government has not shown strategic patience and vision in grooming and guiding the
business; instead, too many particular and personal interests occasionally enter the scene.
Fourth, the Armed Forces of Malaysia are a tiny consumer. A larger market is required to
support the industry.
It will take years, if not decades, to address and overcome each of these flaws.
Furthermore, developments in defence technology, particularly among more developed
powers, necessitate a bigger expenditure of cash and human resources in order to develop a
competitive defence industry sector. The task is very difficult. As a result, when considering
building our own defence business, caution should be exercised. A detailed examination,
conducted by actual professionals, of how other countries with similar poor beginnings
created their defence industries is required, so that we can find and incorporate important
lessons from others.
Malaysia, in my opinion, has to maintain a laser-like focus on the development of its
defence industry. Malaysia is obviously not a large economy or a major power; only major
powers can afford to do so. We will need to identify specific sectors where we have the
potential to develop as well as products that we will be able to export. In terms of cost, we
must examine the amount of capital required.
Because of the aforementioned problems, I believe that having a foreign partner in
growing this industry is perhaps important, at least in the early stages. Pakistan is a successful
example of developing an indigenous defence sector by a severely underdeveloped country
with a comparatively low level of human capital. Despite being a poor country, Pakistan is
now capable of producing advanced armaments, including fighter jets. The key to Pakistan's
defence sector is its strategic cooperation with China, which is eager to transfer and share
technology in the name of shared strategic objectives.
 Malaysia, of course, does not have that kind of relationship with China, and it would
be impossible to establish one given the two countries' territorial dispute. Collaboration with
the US is possible, but it would jeopardise Malaysia's ties with China and raise China's
concerns. South Korea is a more likely option to partner with Malaysia. South Korea is now
pursuing its New Southern Policy, with the goal of strengthening strategic and economic
connections with Southeast Asian countries. Unlike China and the United States, South Korea
has no hegemonic intentions, and Malaysia's collaboration with it will not jeopardise
Malaysia's non-aligned status. South Korea’s relatively advanced defence industry can
provide the kind of support that Malaysia needs, and Malaysia can collaborate in South Korea
projects that are affordable enough for it to manage.

South Korea sees new take on Malaysia’s ‘Look East Policy’

In 1982, the approach introduced by then-prime minister Dr Mahathir Mohamad
created waves in Japan. South Korea, which will celebrate its 40th anniversary next year, is
confident that the strategy it shares with Malaysia will increase growth in the face of present
global concerns. In a recent interview, South Korean ambassador to Malaysia Yeo Seung Bae
told Bernama that people-to-people interactions and industrial collaboration have expanded to
unprecedented levels since the policy's inception 40 years ago. The ambassador stated that
with more South Korean companies increasing their interests in Malaysia over the last two
years, the LEP's 40th anniversary commemoration next year anticipates a strengthening of
bilateral ties.
"South Korea is a country that rose from the ashes of war to become an assistance
contributor. There are high hopes that it will play an even larger role on a worldwide scale.
"Given Malaysia's collaboration with South Korea through the LEP, there is enormous
potential for cooperation between the two sides." Yeo was optimistic about identifying areas
of cooperation over the next 40 years and declaring 2023 the "Look East Again Policy" year.
He noted that both countries are conducting discussions to elevate connections to the level of
strategic partnership, which would include political, economic, and cultural spheres, as well
as defence and defence industrial sectors. For the first time, bilateral commerce between
Malaysia and South Korea reached US$20 billion (RM88.8 billion), surpassing US$23 billion
(RM102.1 billion) in the first ten months of 2022, led by the semiconductor, electrical and
electronic products industries, and petrochemical exports. Malaysia's ninth-largest
commercial partner is the Republic of Korea. South Korea has been one of Malaysia's major
foreign investors in terms of completed projects during the last 40 years, with a total
investment value of more than US$10 billion (RM44.4 billion) last year.
Asean-South Korean Framework. Asean is one of the most essential partners in
advancing South Korea's foreign policy objective of becoming a "Global Pivotal State," a
fundamental idea of its new Indo-Pacific Strategy. President Yoon Suk Yeol launched the
Indo-Pacific Strategy last month during the Asean-Republic of Korea Summit in Cambodia.
He stated that the Korea-Asean Solidarity Initiative (KASI), an Asean-specific initiative,
should include security to establish regional peace and stability, trade promotion, and high-
technology to promote shared prosperity and progress. Given that Malaysia is the republic's
third-largest economic partner in Southeast Asia, it is critical to discover ways to effectively
link its Indo-Pacific Strategy, KASI, and Malaysia's Look East Policy. The South Korean
government announced plans to boost funding for Asean Cooperation Funds such as the
ROK-BIMP-EAGA Cooperation Fund. Because the BIMP-EAGA Facilitation Centre is in
Malaysia, Koreans feel there will be an increased need for collaboration with Malaysia in this
area. The Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area
(BIMP-EAGA) cooperation programme was founded in 1994 by the four countries to
encourage development.