The Malaysian Navy will balance capabilities across its maritime helicopter fleet to secure its exclusive economic zone, stretching across two theatres that are seperated by the South China Sea.
This strategy is largely prompted by the geopolitical contention playing out in the region between China and the United States. Right now, Kuala Lumpur face major decisions in shaping what it describes as its ‘Future Force’.
Principally, Malaysia’s rotary strategy will depend largely upon the forthcoming ‘Maritime Combat Helicopter’ (MCH) – exclusively for anti-submarine warfare (ASW) – for which the service is expected to select a model in 2026.
At present, Malaysia is exploring acquisition and leasing prospects for certain platforms on the market. Some of the factors in the country’s calculus include the potential for technology transfers and the ability to open the programme up to local industry.
MCH will replace the Navy’s five existing multi-role Super Lynx helicopters, which have now exceeded 20-years of service. Malaysia has not ruled out the possibility of extending the lifecycle of Super Lynx to work alongside MCH in the coming years, albeit the Navy is unwilling to invest in the legacy rotorcraft if it will only operate for another five years or less.
The service has also considered the use of uncrewed autonomous systems. The nation’s Defence White Paper, a government guide introduced in 2020, expressed interest in acquiring autonomous underwater vehicles and mine disposal vehicles in particular. Likewise, the country is similarly open to using rotary drones – but only in a secondary capacity as part of a crewed-uncrewed teaming model wherein a crewed platform directs operations.
A footprint in Malaysia
Whichever helicopter manufacturer Malaysia tasks with delivering MCH will need to have a footprint in the Malaysian economy and industrial base.
The kingdom views offset agreements as one of the most important factors to achieving self-reliance in the defence sector according to GlobalData’s ‘Malaysia Defense Market 2024-2029’ report.
In an attempt to both reduce the country’s dependence on foreign arms supply and enhance domestic defence capabilities, the Malaysian government has implemented mandatory offsets for all defence procurements exceeding $13.2m (RM14.1m).
Moreover, the national offset policy requires foreign investors to invest a minimum of 50% of the contract value into the Malaysian economy, and half of the total offset value may take the form of countertrade to purchase Malaysian goods. Furthermore, foreign companies must also pay 5% of the total contract value at the beginning of the agreement, as protection against the non or under-performance of the offset obligation.
Numerous global defence contractors have an established presence in Malaysia including Leonardo, Airbus, and Safran among others. Currently, the Malaysian Navy is considering Leonardo’s AW149 for the MCH.
