Expanding Presence in Southeast Asian Market
Korea Aerospace Industries (KAI) will export 18 FA-50 light fighters worth 1.2 trillion won to Malaysia. The Korean defense contractor is rapidly entering the Southeast Asian market as it has already exported the fighters to Indonesia, the Philippines and Thailand.
KAI signed a US$920 million contract with the Malaysian Ministry of Defense on Feb. 24 to export 18 FA-50 light combat aircraft with improved performances such as a midair refueling function and armament expansion. The first delivery will be made in 2026.
Six aircraft models -- Korea’s FA-50, India’s Tejas, Pakistan’s JF-17, Russia’s MIG-35, and the Turky’s Hurjet -- participated in the tender. Among them, India’s Tejas and the FA-50 were on the shortlist. The Korean aircraft was superior in both price and performance.
Southeast Asian countries usually make additional contracts and increase purchase volume over a long period of time. Malaysia is also planning to introduce 18 additional aircraft of the same type in its second procurement project, so the export volume is expected to increase to a maximum 36 units.
Experts say that Malaysia's decision was influenced by the high satisfaction of its neighboring countries with Korean aircraft. A total of 68 Korean-made aircraft will be exported to the Southeast Asian market, and the number of Korean-made aircraft exported to the world will total 240 units if Malaysia buys additional FA-50 jets under its second procurement project. This contract is the largest single contract in Southeast Asia.