Eyes In The Sky Strengthening Malaysia S Defence With Ai And Drones

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AS THE Indo-Pacific region experiences growing instability driven by great power competition, especially in the South China Sea, Malaysia must adapt its defence strategy to respond to emerging threats.

Rather than pursuing costly conventional weapons, Malaysia has a unique opportunity to enhance its military readiness through the integration of artificial intelligence (AI) and drone technology.
This dual strategy provides a cost-effective, agile, and non-escalatory means of securing national interests while preserving its diplomatic neutrality and regional credibility.
Malaysia’s defence focus has already begun shifting toward unmanned aerial vehicles (UAVs). In 2025, the Royal Malaysian Air Force acquired three Turkish-made Anka-S drones i.e., medium-altitude, long-endurance (MALE) UAVs equipped with synthetic aperture radar, electro-optical/infrared sensors, and secure satellite communications.
Stationed in Labuan, these drones are unarmed and used primarily for surveillance over Malaysia’s Exclusive Economic Zone. This approach allows Malaysia to assert maritime sovereignty, especially in disputed waters, without provoking regional tensions.
Malaysia is also working to localise drone development by collaborating with nations such as South Korea and China, while developing domestic UAV production capabilities through partnerships with universities and technical institutions.

The goal is to manufacture thousands of drones annually, integrating them into both civilian and military uses.
However, drones alone are not enough. The real transformative potential lies in integrating AI into military operations. AI-driven systems can process vast streams of sensor data in real time, enabling rapid detection, classification, and response to potential threats.
These include identifying hostile vessels or aircraft, tracking illegal fishing, or detecting suspicious maritime activity.
AI can also coordinate multiple drones to operate in autonomous swarms sharing tasks like surveillance, signal jamming, or area denial. This swarm capability provides a force multiplier, allowing Malaysia to cover wide areas of ocean with minimal human input.
Further, AI can be used in decision-support systems for military commanders. Inspired by the US Department of Defence’s “Thunderforge” initiative where Scale AI is a key partner, Malaysia could explore similar AI tools to assist in generating operational plans, simulating battlefield scenarios, and prioritising threats, all while ensuring that human decision-makers remain fully in control.

(Image: OECD.AI)This kind of smart command-and-control infrastructure ensures better preparedness and quicker responses, especially in contested or fast-changing environments like the South China Sea.
Neighbouring countries offer useful models. Taiwan has developed loitering drones with AI targeting, India’s “Akashteer” programme uses AI to coordinate counter-drone warfare across hundreds of kilometres, and AUKUS nations have tested multi-drone systems that adapt in real-time to electronic warfare.
While Malaysia has not yet embraced armed drones, these developments show the technological direction of regional militaries.

For Malaysia, a measured approach prioritising surveillance and deterrence while staying within international law is both viable and strategically wise.
To fully realise these capabilities, Malaysia must develop a strong national AI-drone ecosystem. This means investing in homegrown research, engineering, and manufacturing.
Drone-specific AI frameworks should be developed in collaboration with defence contractors, start-ups, and universities.
Ethical frameworks and governance structures must be established to ensure that AI systems remain under meaningful human control, comply with humanitarian law, and avoid misuse.
ASEAN’s ongoing efforts to shape regional AI norms can guide Malaysia’s approach, balancing innovation with responsibility.
The future of defence is not just about firepower, it’s about information, intelligence, and interoperability. Malaysia must ensure that its drones and AI systems are not siloed, but integrated across naval, air, and ground forces.
For example, drone swarms could relay real-time video to navy vessels, while AI systems track and flag suspicious movement along maritime borders.

Edge computing devices onboard drones can process data locally, minimising delays caused by remote command centres. This kind of seamless, multi-domain integration is crucial for fast, adaptive operations in a crisis.
(Image: The Borneo Post)Importantly, Malaysia must not lose sight of its strategic identity as a neutral and peace-oriented nation. Drones and AI should not be tools of provocation but instruments of vigilance and deterrence.

By maintaining unarmed drone deployments, emphasising surveillance over strike capabilities, and using AI for defensive planning, Malaysia can strengthen its position without becoming entangled in the escalating militarisation of the region.
This approach allows Malaysia to assert its rights under international law, monitor its waters against encroachment or criminal activity, and coordinate better with regional partners on maritime safety.
In the long run, Malaysia can take the lead in shaping an ASEAN-wide doctrine for AI and drone cooperation. This could include shared surveillance protocols, disaster response coordination, and collective counter-UAV strategies.
By promoting interoperability, transparency, and civilian-military integration, Malaysia would contribute to regional stability without becoming dependent on any external bloc.
As global militaries enter the age of autonomous systems and algorithmic warfare, Malaysia must not be left behind. Through careful investment in AI, drone technology, and regional cooperation, Malaysia can build a modern defence force that is smart, agile, and ethically grounded.
The goal is not domination but assurance guarding sovereignty with intelligence, and preparing for conflict without seeking it. In the contested waters and skies of the Indo-Pacific, Malaysia’s best defence may lie not in missiles, but in the sharp eyes and fast minds of AI-guided drones. 
R. Paneir Selvam is the principal consultant of Arunachala Research & Consultancy Sdn Bhd, a think tank specialising in strategic national and geopolitical matters.
The views expressed are solely of the author and do not necessarily reflect those of  MMKtT.
- Focus Malaysia.

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