Malaysia Defence and Security Report Q2 2008

BMI's newly-released Malaysia Defence & Security Report Q2 2008 provides an assessment of the country's internal and external security situation. Internally the security situation remained stable in Malaysia, with the government maintaining strict control over any dissenting political movements.

Malaysia has strict anti-terrorism laws in place, mainly with regards to how information is used in activities related to terrorism. In Q108 tensions arose over the Malaysian government's decision to suspend visas for migrant Indian workers. There are approximately 2mn Malaysians who are descended from Indian immigrants and there were concerns over the possibility of protests from such communities.

It is likely that the government will be prepared for any large scale protests as similar ones were held during 2001.

Malaysia's well-educated workforce, access to defence technology and relatively low labour costs are the strong points of its defence industry. Despite the country having a relatively small defence industry, the government has provided structured assistance for its development, such as in the 2002 Defence Industry Blue Print Initiative. The blueprint is aimed at fostering overall maintenance and repair activities and the manufacturing of smaller parts in Malaysia. In particular, the government has sought greater access to transfers of technology through securing offset programmes. The aim is to increase manufacturing, research and design as well as through-life support capabilities. With this level of support it is likely that the Malaysian defence industry stands a good chance of growing significantly.