The Turkish defense firm Desan has announced plans to construct its first overseas shipyard in Malaysia, marking a significant expansion into Southeast Asia. This development comes after the company signed a Joint Venture and Cooperation Agreement with SM-WEZ, a local partner in the Straits of Melaka Waterfront Economic Zone, last week. The agreement was officially launched at a ceremony held in Istanbul on January 8, 2024.
The new shipyard will focus on “new shipbuilding, maintenance, repair, and modernization activities for military and commercial vessels.” The construction is set to begin in early 2024, with operations expected to commence within two years on a plot spanning a total area of 171 acres.
Strengthening Defense Partnerships
This initiative is not Desan’s first collaboration with Malaysia. The company is currently working on the *Multi-Purpose Coast Guard Vessel* (MPMS-1) for the Malaysian Coast Guard Command and recently signed a contract for a second vessel, designated MPMS-2. The vessels will be equipped with advanced sensors, weapons systems, and communication systems, as well as unmanned surface vessels (USVs).
According to defense analyst and professor at Qatar University, Ali Bakir, this collaboration represents a transformative milestone for both Desan and Malaysia. He emphasized that the shipyard signifies a pivotal transition for Desan as it moves from the domestic market into the international arena, enhancing its role in the maritime sector.
Bakir noted, “This investment, along with other similar ones in the aerial and maritime domains, will strengthen cooperation between the Turkish and Malaysian defense industries in unprecedented ways.” He believes that this development will positively influence existing defense agreements between Turkish defense companies and other Muslim nations in Southeast Asia.
Strategic Implications for Turkish Defense Industry
Turkey has actively sought defense cooperation agreements with Muslim nations in Southeast Asia to gain access to these emerging markets. Bakir highlighted that the rapid establishment of this venture indicates a significant success for Ankara and is poised to revolutionize its defense relationships in the region.
The appeal of the Turkish defense industry lies in its competitive advantages, including relatively affordable defense equipment and effective platforms. Additionally, opportunities for technology transfer are attractive to major Muslim countries looking to enhance their defense capabilities.
Bakir concluded that the ongoing competition between the United States and China, coupled with restrictions on defense products from Western and Chinese sources, makes third-party “defense solutions” increasingly appealing to these nations. As Turkey continues to forge strategic partnerships in the defense sector, the implications of Desan’s new shipyard in Malaysia could resonate throughout the region for years to come.
