Turkey’s defense firm Desan is making a strategic move into Southeast Asia by establishing its first overseas shipyard in Malaysia. On social media, the company announced that it signed a Joint Venture and Cooperation Agreement with SM-WEZ, a local partner owned by the State of Malacca, last week. This collaboration was officially launched during a ceremony in Istanbul on January 8, 2024.
The new shipyard will focus on “new shipbuilding, maintenance, repair, and modernization activities for military and commercial vessels.” Construction is set to begin early this year, with the facility expected to become operational within two years, spanning a total area of 171 acres. This venture marks a significant milestone for Desan as it expands its footprint beyond Turkey.
In addition to the shipyard project, Desan is already engaged in building a Multi-Purpose Coast Guard Vessel (MPMS-1) for the Malaysian Coast Guard Command. Recently, the firm signed an agreement to construct a second vessel of the same type, designated as MPMS-2. The Turkish company will equip these vessels with advanced sensors, weaponry, communication systems, and unmanned surface vessels (USVs).
Strategic Milestone in Defense Cooperation
“This is undoubtedly a transformative milestone for both the company and Malaysia,” said Ali Bakir, a defense analyst and professor at Qatar University, in an interview with Breaking Defense. He emphasized that this development signifies a major transition for Desan as it shifts focus from the domestic market to international ventures, enhancing its role in the maritime domain.
Bakir anticipates that this investment, along with similar initiatives in aerial and maritime sectors, will significantly strengthen cooperation between Turkish and Malaysian defense industries. He believes it will create positive spillover effects alongside other defense agreements between Turkish firms and Muslim nations in Southeast Asia.
Turkey has been actively pursuing defense cooperation agreements with Muslim-majority countries in the region, aiming to penetrate these markets. Bakir highlighted that the speed at which this goal has been realized represents a considerable achievement for Ankara, poised to revolutionize its defense relationships in Southeast Asia.
“The openness of the Turkish defense industry is particularly appealing to these nations,” Bakir remarked. He noted that the advantages of partnering with Turkey include relatively affordable defense equipment and effective platforms, coupled with opportunities for technology transfer that could significantly enhance the defense sectors of key Muslim nations.
He concluded that the ongoing competition between the United States and China, as well as restrictions imposed by Western and Chinese entities on defense products, make third-party defense solutions more attractive for these nations.
As Desan sets the stage for its shipyard in Malaysia, the implications for regional defense collaboration are likely to resonate throughout Southeast Asia, potentially reshaping the landscape of military manufacturing and cooperation in the coming years.