How China is helping Malaysia’s military narrow the gap with Singapore, Indonesia

From new surveillance aircraft to a revamp of the naval fleet, the hardware wish list drawn up by Malaysia’s military to keep up with amply funded regional peers like Singapore and Indonesia is no small ask – especially for Prime Minister Najib Razak’s cash-strapped government.

With no signs of the country’s current fiscal strains going away – Najib last year slashed defence spending by 13 per cent – some industry experts are predicting a possible low-cost workaround could be increased procurement from Chinese weapon suppliers.

Such a prospect would mark a major step up in the already deepening diplomatic ties between the two countries, which have seen Malaysia become among the top destinations for Chinese foreign direct investment.

For state-linked Chinese weapon companies, the prospect of a surge in Malaysian business is likely to be welcomed with open arms, military observers say, as they hanker for major export deals with countries that have traditionally turned to the West or Russia for their military needs.

Speculation about Malaysian procurement of Chinese weapons went into overdrive last week after two reports suggested Chinese officials visiting Kuala Lumpur had mooted the sale of advanced rocket launchers and a radar system for deployment in the country’s southern tip bordering Singapore.

Malaysia’s defence ministry refuted the reports, but some observers say the deal may eventually materialise in some form, even though the scale and purpose of the possible purchase remains unclear.