Malaysia has taken a concrete step toward building its own weapons. In early July 2026, Defense Minister Mohamed Khaled Nordin announced that the country aims to begin domestic rocket production within about two years, with manufacturing expected to start by 2028.
Missile production is planned to follow once rocket manufacturing capabilities have been established. The initiative will be carried out through a partnership with an Australian defense company, marking Malaysia's effort to move beyond purchasing foreign-made weapons and toward developing its own defense industry.
An Agreement with an Australian Partner
The plan is anchored in a major agreement. On July 1, 2026, at the National Convention Centre Canberra, Weststar Group signed a strategic joint venture agreement with Rocket Technologies International (RTI), an Australian aerospace and defense company.
A joint venture is a business arrangement in which two companies establish a jointly owned enterprise. RTI is known for developing rocket technology, satellite systems, and defense solutions.
Representing Malaysia, the agreement was signed by Syed Azman Syed Ibrahim on behalf of its subsidiary, Weststar Defence Industries. Representing Australia, it was signed by RTI founder Allan James Payne.
The signing ceremony was witnessed by several senior officials, including Defense Minister Mohamed Khaled Nordin, Johari Abdul, and Malaysia's High Commissioner to Australia, Sharrina Abdullah.
The partnership has been described as a strategic joint venture aimed at strengthening independent aerospace and defense capabilities in both countries.
Rockets First, Missiles to Follow
The core objective of the collaboration is to establish domestic manufacturing capacity in Malaysia. According to The Star, the two companies will create joint venture entities in both Malaysia and Australia before constructing production facilities in Malaysia.
Rocket production is expected to begin within about two years, after which the capability will be expanded to include missile manufacturing.
The partnership extends beyond rockets and missiles. It also covers the assembly of integrated defense systems and satellite systems for both civilian and government applications.
A key priority is maximizing local design and domestic content so that future products will not depend entirely on foreign suppliers. The satellite component of the agreement includes both civilian satellites and specialized satellite solutions for government use.
Expanding Malaysia's Defense Industry
For Malaysia, the significance of the agreement extends far beyond constructing a manufacturing facility. Through its partnership with Rocket Technologies International (RTI), the country is expected to gain access to technology transfer, research and development, workforce training, and collaborations with universities.
The agreement could also allow Malaysian companies to join RTI's global supply chain, giving them opportunities to participate in international defense projects. Through training programs and partnerships with higher education institutions, local engineers and technicians are expected to acquire expertise in rocket and missile technologies firsthand.
The economic potential is substantial. Over the long term, the collaboration is projected to generate more than US$10 billion, or roughly RM41 billion, across aerospace, defense, satellite, and advanced technology programs.
The business edition of New Straits Times estimates the value even higher, at more than RM42 billion. The partnership is also expected to strengthen trade and economic growth between Malaysia and Australia.
Part of a Broader Push for Defense Self-Reliance
The Malaysian government has framed the initiative as part of its broader strategy to achieve greater defense self-reliance.
Plans to manufacture rockets and, eventually, missiles are consistent with the National Defence Industry Policy, which aims to strengthen the domestic defense sector and reduce dependence on imported weapons.
The signing ceremony in Canberra also reflected the increasingly close defense relationship between Malaysia and Australia. According to the government, the ultimate objective is to achieve a sovereign defense capability.
"The government welcomes and fully supports the collaboration between Weststar Group and Rocket Technologies International Pty Ltd (RTI), as it aligns with our push to build domestic capabilities in rocket and missile development," Defense Minister Mohamed Khaled Nordin was quoted as saying by The Star.
For now, only rocket production has been formally announced, with missile manufacturing planned as the next phase. If the two-year timeline is met, Malaysia is expected to have its own domestic rocket production facility in operation by 2028, with missile production to follow.
The success of the initiative will ultimately depend on the completion of manufacturing facilities and the effective transfer of technology from RTI over the next two years.
