26-07-2025
Strong homegrown ecosystem needed
UAVs, which come in different shapes and sizes. — Wikicommons
TO reduce dependence on external vendors, Malaysia must develop a strong homegrown innovation ecosystem, says Universiti Malaya's International Institute of Public Policy deputy executive director Dr Muhammad Danial Azman.
He says we can begin by forming close partnerships between government, industry and academia, supported by clear policies and stable funding.
Danial outlines several key components that can be explored, including public-private-academic consortia to establish defence R&D clusters that unite universities, sovereign funds and established primes.
'Co-fund projects from bench to field via matching grants, ensuring pathways to commercialisation for breakthroughs. Or host annual 'Defence Innovation Challenges' to crowdsource AI and UAV solutions from local startups,' he suggests.
Also proposed is the building of defence technology sandboxes which entails the creation of regulatory zones where SMEs can test ISR sensors, autonomy software and communication links on military bases; and fast-track certification for proven prototypes, reducing red tape from years to months.
'We can use data from sandboxes to improve doctrines and operational concepts.'
The concept of modular, open- architecture platforms can also be considered.
Danial says open interfaces can be mandated for AI payloads and drone subsystems, enabling plug-and-play upgrades from various vendors, other than encouraging local SMEs to specialise in niche modules –such as vision processors, secure data links, or payload dispensers – rather than entire platforms.
'Use commercial off-the-shelf hardware where possible, then gradually replace critical parts with Malaysian-designed components.'
When it comes to policy and procurement measures, Danial suggests the enforcement of local content requirements in defence procurement, with clear metrics on technology transfer.
'Include co-development clauses in all major contracts, ensuring primes collaborate with Malaysian entities from the start. Allocate a portion of the Defence White Paper budget exclusively for early-stage, high-risk and high-reward indigenous projects.'
At the same time, building public trust in defence procurement depends on three pillars: independent oversight, tiered transparency and adaptive contracting.
'These must collaborate to illuminate budgets and schedules without revealing sensitive capabilities or restricting commanders' flexibility.'
Among others, Danial says governance mechanisms for accountability may include several policy options such as the establishment of an independent defence audit commission and empowering parliamentary oversight cells with security clearance to review classified annexes.
