Turkey, Malaysia Agree to Set up Shipyard in Malacca State

Turkey and Malaysia have agreed to establish a $440 million joint shipyard in the southern Malaysian state of Malacca, expanding cooperation in the maritime and defense sectors.

The shipyard will be developed with Turkish shipbuilder Desan Shipyard and is expected to become operational in 2028. The facility will cover about 9.4 hectares of coastline along the Strait of Malacca, a key global maritime trade route.

Malacca Chief Minister Ab Rauf Yusoh, who visited Desan Shipyard in Istanbul, said the project would support shipbuilding, ship repair, maritime services, fabrication and maritime tourism. He told Malaysia’s state news agency Bernama that the shipyard would operate as a joint venture involving SM-WEZ Corporation, Henry The Black Shipyard Sdn Bhd and Desan Shipyard.

The shipyard agreement was among seven documents signed during Malaysian Prime Minister Anwar Ibrahim’s January 6–8 official visit to Turkey at the invitation of President Recep Tayyip Erdoğan.

Defense cooperation also advanced during the visit. Desan Shipyard and Malaysia’s Home Ministry signed a 339.85 million ringgit ($83.5 million) contract for a second Multi-Purpose Mission Ship for the Malaysian Maritime Enforcement Agency.

The 99-meter vessel will carry 70 crew members and 30 passengers and has an endurance of up to 30 days. It will be equipped with four fast response boats, two vertical takeoff and landing unmanned aerial vehicles, an 11-ton-capacity helipad, an infirmary and detention facilities for 45 people. Weapons, electronic and communications systems will be integrated by Turkish defense firms Aselsan and Havelsan.

The ship will also include an unmanned surface vehicle developed by Desan, marking Turkey’s first export of a USV. The first MPMS for the agency is currently under construction in Turkey and is scheduled for delivery by the end of 2027.