Local defence firms fight uphill battle for recognition

Companies face steep barriers in industry dominated by foreign giants, says Malaysian player

KUALA LUMPUR: Malaysia’s ambition to build sovereign defence capability is colliding with a hard reality – local firms say they are still being edged out of their own industry by entrenched foreign players, credibility barriers and a system that rewards established track records over new entrants.

Nizra Industries CEO Nik Iruwan Nik Izani said the difficulty of entering the defence space was far greater than he had anticipated.

“I did not know how difficult it was to get a defence contract. When I came in, a lot of people were against it and not many supported it. Then we saw who we were up against – the big boys. In this industry, it is not just about putting in a good proposal and doing the work.

“Track record matters and relationships at the higher levels matter too,” he told theSun during the Defence Services Asia (DSA) and National Security Asia (NATSEC) 2026 exhibition last week.

Nik Iruwan began his career in motorsport in the early 2000s before moving into the automotive sector in 2016 and later entering the defence industry in 2019. He said the company had to move quickly after identifying an opportunity, investing in capabilities even before securing its first contract.

“After we won that first one, I felt anything was possible and we kept going. But obviously it was not as easy as I thought.

“We expanded into different capabilities – from military land mobility systems to weapons radar, unmanned systems and then integrated systems, electronic warfare and artificial intelligence.

“All of that happened within five years, but there was a lot of work behind it, even on projects we did not win.”

On competing with international players, he said local firms should not be measured as if they are already on equal footing with established global vendors.

“We cannot compare ourselves directly with overseas players. I just want to be humble about that. But in defence, we need sovereign technology. If our country does not use it, who else is going to use it? That is why I believe local capability matters and I believe my country will work with us.”

At the same time, he acknowledged that full independence from foreign defence technology is unlikely, with collaboration remaining part of the model. “I do not think 100% local is possible.

But you must have the passion, the commitment and the belief to keep pushing.

“Do not look at defence in a narrow way. Look at the sovereignty of the technology, its civilian applications, the quality jobs it can create and the wider value it can bring.

“The real challenge is making people believe this will work – not just that it looks exciting or glamorous, but that it is serious, sustainable and worth long-term commitment from the government and the military.”

On April 22, Nizra Industries unveiled its Arkon AI-driven C4ISR system at DSA 2026 – a Malaysia-developed command-and-control platform designed to integrate sensors, unmanned systems, personnel and command units into a unified, real-time operational network.

Nik Iruwan said the system, while already tested, remains under development. “Arkon is only 5% of what it can be.

There is so much potential. But even that five per cent is already a breakthrough.

“The drone platform has already been tested. The wider system is still being developed and after DSA we hope to move into further testing with the military.”