Turkey and Malaysia Ink USD 443 Million Joint Venture for Strategic Malacca Shipyard

February 2026

Turkish defense shipbuilder Desan has marked a major milestone by expanding into Southeast Asia with its first international facility in Malacca, Malaysia. This project represents a joint venture between Desan, the state-owned Straits of Melaka Waterfront Economic Zone (SM-WEZ), and project developer Henry The Black Shipyard. The investment is valued at approximately MYR 1.94 billion (USD 443 million).

Spanning 171 acres along the critical Strait of Malacca, the “Enrique of Malacca Shipyard” is scheduled to break ground in early 2026. The hub will serve as a comprehensive center for the sustainment, overhaul, and assembly of both military and commercial vessels, with full operations expected to commence by 2028. The investment is closely linked to deepening defense ties, highlighted by a recent MYR 339.85 million (USD 83.6 million) contract for a second Multi-Purpose Mission Ship (MPMS-2) for the Malaysian Maritime Enforcement Agency (MMEA). This 99-meter vessel, which saw its steel-cutting ceremony in February 2026, will be built alongside its sister ship, MPMS-1. These advanced platforms will integrate Turkish technology from contractors like Aselsan and Havelsan, featuring unmanned surface vehicles (USVs), aerial drones, and 30-day sea endurance.

The facility will facilitate significant technology transfer, transitioning the relationship from a buyer-seller dynamic to a long-term industrial partnership. Beyond shipbuilding, the agreement aligns with Turkey’s “Asia Anew” initiative and Malaysia’s drive for maritime modernization. The new shipyard is poised to become a regional cornerstone for maritime services and tourism, leveraging its position on one of the world’s busiest trade routes to provide lasting value to the Indo-Pacific maritime ecosystem.

(Sources: Turkish Minute; The Defense Post)

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