The Finance Ministry has issued a three year contract with Ketech Asia Sdn Bhd to supply 9mmm and 5.56mm ammo to the Malaysian Armed Forces and other security agencies, the Defence Ministry said in a written answer in Parliament on July 13.

Ketereh MP Datuk Khlir Mohd Nor asked what steps were being taken by the ministry to overcome severe shortage of small arms ammo by MAF unlike the time when it was supplied by Syarikat Malaysian Explosive Ordnance (SMEO) with ammunition from 5.56mm, 7.62mm, 9mm dan 12 Bore (Short Gun) not only to the MAF, but also the police and other security agencies.

The ministry said to ensure a stable and resilient supply of ammunition to the Armed Forces and government security agencies, it will utilise the Central Contract mechanism with Ketech Asia Sdn. Bhd., which was appointed and coordinated by the Finance Ministry.

“The contract covers the supply of small – arms ammunition, namely 9mm and 5.56mm rounds, to government agencies nationwide, with an estimated contract value of RM150mil over a three – year period,” it added.

The ministry is also strengthening the capability of the local defence industry through the operation of Ketech Asia’s ammunition manufacturing plant in Kuala Lipis, Pahang. The plant is capable of producing 120 million rounds of 9mm and 5.56mm ammunition and was planning to produce 7.62mm and 12.7mm ammo as well.

The Science and Technology Research Institute for Defence (STRIDE) is carrying out technical services, testing, and evaluation to ensure that the ammunition produced meets the specifications and standards set by the MAF.

The ministry is also encouraging the development of critical components of ammunition locally under the the National Defence Industry Policy to strengthen the domestic supply chain and lessen the dependence from foreign sources.”

It is interesting to note that Ketech did not announced the centralised contract when it took part in the DSA 2026 exhibition. Malaysian Defence had previously reported the soft opening of the Ketech ammo plant previously.
Ketech personnel at its showcase at DSA 2026 also confirmed that the factory was already producing 9mm and 5.56mm ammunition though they did not named the customers. They said some of the ammo components were sourced locally and others were imported as well.

It must be noted that the PH government stopped buying small arms ammunition from SMEO when they came into power in mid-2018 and published open tenders for their supply to MAF and other government security agencies. Malaysian Defence was informed the centralised deal with Ketech was initially green – lighted by the – then Ismail Sabri government.

It is unclear when the contract was awarded though and the start of deliveries. Some of the ammo procured via open tenders to MAF and other security agencies, and supplied from overseas are still valid and they are being delivered, accordingly.

As you are aware Ketech is also the company which was awarded the Karaok ATGW contract. It is also likely the company will also supply Omtas ATGW and ammunition for the Tarantula armoured vehicles as it was awarded the Industrial Cooperation Program for the vehicle deal.

• Malaysian Defence