Main headlines from this issue

Malaysian offset venture accused of bribery and contract inflation

Contraves Advanced Devices (CAD) has come under scrutiny for alleged bribery and misappropriation of funds. Details of CAD's participation in Malaysia’s RM9bn ($2bn) littoral combat ship programme emerged in a declassified 250-page parliamentary report and leaked documents published this month. The country’s anti-corruption authority has gathered sufficient evidence to charge several executives.

China offsets spark concern about industrial competitiveness

China is leveraging its domestic market and production base to acquire advanced technologies and develop “coercive leverage” in critical sectors, argue Nathan Picarsic and Emily de la Bruyère, senior fellows at the Foundation for Defense of Democracies. China has received mounting attention following two major offset deals this year.

Korea updates localisation guidelines, releases priority offset list

Korea has updated its evaluation criteria for local production in offset proposals. The Defense Acquisition Program Administration (DAPA), the agency responsible for Korea’s offset programme, will grant additional points to OEMs that earn cooperation certifications with local firms.

Hungary and Turkey to cooperate on defence and energy

Hungary wants to produce unmanned aerial vehicles (UAVs) and solar panels in-country with help from Turkey. Minister for Technology and Industry László Palkovics announced his plans after meeting with his Turkish counterpart Mustafa Varank in Ankara.

Russia leans on industrial cooperation with Asian partners

Russia is leveraging industrial cooperation to offset the impact of America’s economic sanctions. Within just three weeks, Russian ministers met with their counterparts in India, China, and Iran to promote defence cooperation and technology exchanges.