Malaysia Defence & Security Report 2018
Demand for military equipment will remain strong in Malaysia over the coming decade: the country faces a range ofinternal and external security threats and all branches of its armed forces are in need of modernisation. However, funding availablefor new procurement will remain limited in the near term, amid ongoing fiscal constraints. Most equipment will be sourced fromabroad, given the still-relatively underdeveloped nature of Malaysia's defence industrial base. The process of developing localcompanies' technological capabilities will only be gradual, amid limited funding available for R&D.