Thales sees strategic growth opportunities in Malaysia's defence, aviation vision

KUALA LUMPUR: French multinational aerospace and defence corporation, Thales S.A. sees Malaysia as a key strategic hub in the Asia Pacific region and poised to strengthen its presence in the country across defence, cybersecurity, aviation, and maintenance, repair and overhaul (MRO) sectors.

Thales vice president for Southeast Asia Nicolas Bouverot said that the shift in Malaysia's defence procurement philosophy has opened new avenues for more efficient and sustainable delivery of solutions, while enhancing local autonomy and readiness.

"Malaysia is a strategically important location in Asia Pacific and for Thales as a business. With defence procurement now looking at things with a longer-term lens, we foresee a lot of opportunities in Malaysia.

"Ultimately, this longer-term vision not only increases our ability to provide services to the Malaysian Armed Forces more efficiently but also provides them with a stronger and more reliable capability," he told Business Times in an interview recently.

Thales has been operating in Malaysia for over 45 years and currently employs over 100 Malaysians at its Kuala Lumpur headquarters.

Over the decades, the aerospace company's role has evolved from an aerospace supplier to a trusted long-term partner, contributing technologies and local expertise across defence, aviation, and air traffic management.

In defence sector, Malaysia's emphasis on safeguarding sovereignty amid a complex regional environment has led to increased investment in air and maritime surveillance, cybersecurity, and digital resilience.

Bouverot said the Royal Malaysian Air Force for example is enhancing its air surveillance capabilities with the addition of Thales' GM400α radar systems, on top of an existing unit already in operation.

He added that these systems offer early threat detection and enhanced tactical decision making.

Bouverot also said that Malaysia's priorities are well aligned with Thales' strengths.

"Malaysia is focusing on artificial intelligence (AI) integration, cybersecurity and maritime domain awareness to strengthen sovereignty and respond to evolving threats.

"Prime Minister Datuk Seri Anwar Ibrahim has directly identified AI, data protection and cybersecurity as strategic priorities for national defence and resilience," he said.

Thales has invested in four dedicated support centres across the country, namely in Lumut, Kota Kinabalu, Pekan and Kuala Lumpur that provide technical services for naval systems, vehicles, communications and systems integration.

Bouverot said these centres enable Thales to offer hands-on support and rapid response capabilities while also helping build local technical expertise.

Thales is also supporting talent development in Malaysia through partnerships with local universities.

The aerospace company has co-developed a Master of Science in International Technology Management for Defence and Security through an academic partnership with National Defence University of Malaysia and the UK-based Warwick Manufacturing Group.

Since 2019, the programme has produced 46 graduates across three cohorts, equipping Malaysia with future-ready defence professionals.

Bouverot said technology transfer and localisation are the heart of Thales' operations in the country.

The company has contributed to several major Malaysian defence programmes, including the ground-based air defence system, the AV8 tactical vehicle initiative, and the littoral combat ship project.

Thales is also working closely with local partners to strengthen the country's defence self-reliance.

Bouverot said Thales had signed a Memorandum of Understanding (MoU) at the recent Langkawi International Maritime and Aerospace Exhibition (LIMA) 2025 with Weststar Group to establish a Radar Centre of Excellence, focused on technical training and knowledge transfer.

Thales has also signed a separate MoU with ADS Sdn Bhd to co-develop next-generation tactical radio systems in alignment with the Malaysian Army's evolving operational requirements.

To date, Thales has delivered over 11,000 radios to the Malaysian armed forces, Bouverot said.

He added that Thales is also building on its global capabilities in the cybersecurity domain following the acquisition of Imperva Inc, a cybersecurity software and services company, in 2024.

The move made Thales as one of the world's largest cybersecurity providers.

"With Malaysia expanding the roles of its national cyber agencies like National Cyber Security Agency (NACSA) and CyberSecurity Malaysia, Thales sees potential in offering AI-powered solutions for national data protection and digital infrastructure security," Bouverot said.

Thales showcased its strength in air defence and tactical communications at the recent LIMA 2025 with featured technologies including the GM radar series, Skyview C2 systems, and the Forceshield air defence solution.

The company also marked its first engagement with the Royal Malaysian Police with the latter's Letter of Award for Thales and Novatis Resources Sdn Bhd to deploy a Reality-H️ AW139 Full Flight Simulator.

Looking ahead, Bouverot said Thales' localisation-first strategy in Malaysia is about building resilient ecosystems.

"Our Asia Pacific and Malaysian strategies remain similar – to bring class-leading, field-tested, global technologies and localise them for local markets around the region.

"This not only allows Asia Pacific nations to rapidly advance their technological capabilities, but also to grow local capability by investing in training and jobs for local support workforces," he said.

Thales has further strengthened its commitment to Malaysia's defence capabilities since the completion of LIMA 2025.

The company received an official Letter of Award during Anwar's recent state visit to France to supply two additional Ground Master 400 alpha (GM400α) long-range air surveillance radars.

Thales said the latest contract increases the total number of GM400α radars in Malaysia to four, underscoring continued trust in Thales' technology and its partnership with the Royal Malaysian Air Force.