KUALA LUMPUR, Jan 21 — Prime Minister Datuk Seri Anwar Ibrahim today openly acknowledged that defence procurement has long been a sector vulnerable to abuse and opaque practices, saying the newly launched National Defence Industry Policy (DIPN) was intended to prevent a repeat of failures that had weakened both governance and public trust.

Speaking at the policy’s launch, Anwar said those familiar with the defence industry would recognise that procurement-related misconduct was not a new problem, describing it as a space where weak oversight, personal interests and secrecy had repeatedly undermined national priorities.

He said the policy was therefore long overdue, particularly in light of recent scandals that had shocked the country and drawn international attention, even as investigations and court proceedings were still ongoing.

“It is impossible to build a strong defence foundation if we are still trapped by personal interests, commissions and wealth,” he said.

“As we all know, when it comes to defence, it’s been a place for ‘songlap’ (embezzle) and ‘sakau’ (steal), where corruption in the defence sector was not merely a financial issue, but a direct threat to national security.”

Anwar stressed that such issues should not be allowed to tarnish the reputation of the armed forces as a whole, saying the integrity, commitment and professionalism of the vast majority of personnel remained intact.

He credited Malaysia’s defence and security agencies for maintaining stability that helped attract foreign investors, noting that the country recorded RM3 trillion in trade last year, a performance he said was underpinned by security and preparedness that many took for granted.

The prime minister warned against complacency, saying defence readiness remained critical despite regional calm, particularly given strategic flashpoints such as the South China Sea, the Indian Ocean and the Straits of Malacca, which he described as central to global trade and security.

He said while Malaysia maintained diplomatic relations with major powers including the United States and China, diplomacy alone could not substitute for credible defence preparedness.

Anwar also warned that corruption and misconduct across defence-related agencies — including the civil service and enforcement bodies — would no longer be tolerated, framing the effort to clean up the sector as a battle in itself.

“Like how you are trained for war, this is our war now,” he said, adding that without serious reform and discipline, none of the government’s defence plans would materialise.

He said the DIPN was designed to impose structure, governance and accountability on a sector that had long relied on discretion and fragmented decision-making, requiring all defence-related decisions to be aligned with a central policy framework.

Beyond procurement, Anwar said the policy was intended to strengthen Malaysia’s independence by shifting focus from merely purchasing equipment to developing local technological capability, research and development, and industrial collaboration.

He said past defence spending had failed to translate into sustainable local capacity, partly because attention had been diverted by short-term interests, commissions and middlemen, rather than long-term ecosystem building.

Under the DIPN, emphasis will be placed on strengthening institutions, commercialising research and development, building a resilient domestic supply chain and reducing reliance on external suppliers, while working within Malaysia’s financial and strategic constraints.

Anwar said this approach was also critical to ensuring that defence spending delivered tangible benefits to the armed forces themselves, including improved welfare, facilities and readiness.

He reiterated the government’s commitment to improving housing, schools in military camps, allowances and salary increments for service personnel, saying their sacrifices — including long separations from families — should not be undermined by misconduct at higher levels.

The prime minister cited the armed forces’ engineering corps as an example of institutional capacity that could deliver results quickly when governance and execution were aligned, rejecting the notion that the defence sector was defined solely by negative headlines.

“Who says everything is bad news?” he said, pointing to improvements in military housing and facilities as evidence that reform was possible.

Anwar said the success of the DIPN would ultimately depend on strict adherence to governance, transparency and accountability, warning that without discipline and institutional integrity, even the best policies would fail.

He said the policy was meant to serve as a permanent corrective mechanism to ensure the defence sector did not repeat the mistakes of the past, while laying the foundation for a more credible, self-reliant and trusted defence ecosystem.

The DIPN was launched today with the defence ministry and its minister Datuk Seri Khaled Nordin.