Ketech Asia To Expand Product Line With Two New Ammunition Calibres In 2027

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, April 22 (Bernama) -- Local ammunition production company Ketech Asia Sdn Bhd plans to strengthen its product portfolio and revenue streams with the introduction of two additional calibres, namely the 7.62 millimetre (mm) and 12mm rounds next year, as part of its broader growth and capacity expansion strategy.

Its project director Rahayu Bahaudin said the move reflects the company’s focus on scaling its small arms segment while carefully assessing return on investment (ROI) amid ongoing efforts to build a more resilient and cost-efficient production base.

“But that being said, when we move into small arms manufacturing, we already know the supply chain for raw materials is not available in Malaysia because there are no industry players supplying them.

“We do not have that ecosystem, so we still have to import all these raw materials from outside Malaysia,” she told Bernama in an exclusive interview on the sidelines of the Defence Services Asia (DSA) and National Security (NATSEC) Asia 2026 exhibition here.

Ketech Asia operates the country’s first highly automated ammunition manufacturing facility in Kuala Lipis, Pahang, which is currently producing up to 130 million rounds of 9mm and 5.56mm ammunition annually for the domestic market.

The manufacturing of standard small arms ammunition relies heavily on three vital raw materials: brass to form the cartridge casing, a primer as the initial ignition source, and propellant (gunpowder) to generate the explosive gas pressure needed to fire the bullet out of the barrel.

Rahayu said that even though Ketech Asia sources supplies from local companies in Malaysia, those companies still have to import from overseas and, amid ongoing conflicts, costs continue to rise, particularly as logistics expenses can sometimes exceed the value of the goods purchased.

She said Ketech Asia mainly imports raw materials from China and Turkiye, while continuing to explore other sources to avoid overdependence on a single supplier.

On exports, Rahayu said Ketech Asia is prioritising the domestic market first as its original intention is to achieve self-reliance, before eventually expanding to other countries.

She added that the company has received numerous inquiries from countries such as the Middle East, Thailand, Singapore, and the Philippines.

Amid the ongoing conflict in West Asia, Rahayu said that while Ketech Asia has no issues with raw material supply, rising logistics costs have increased overall expenses, which the company must absorb despite selling at fixed prices to the government.

On demand, she said orders could reach about 100 million rounds per shipment.

Rahayu also said the company is on track to becoming a leader and icon in ASEAN military technology by 2030, adding that “we have planned, everything has been achieved at this point”, as Ketech Asia opened its ammunition factory at the end of 2024.

She also said Ketech is focusing on expanding its Kuala Lipis manufacturing hub to create more job opportunities for Bumiputera, especially outside major cities.

-- BERNAMA