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SMEO has yet to sign MLA with Colt

KLS: Minister of Defence, Ahmad Zahid Hamidi, said SME Ordnance Sdn Bhd (SMEO) is in the process of discussion with Colt Defence LLC to get Manufacturing Licence Agreement-MLA for manufacturing and assembling Colt M4 Carbine.

The Minister told Senator Tunku Abdul Aziz on 29 July 2010 that discussion on MLA is in the final review stage before tabling it to the United States authority.

“Meanwhile, SMEO has signed Representative Agreement dan Techinical Assistance Agreement with Colt Defence LLC.”

He explained in the draft MLA the both sides agreed that SMEO will produce and assemble Colt M4 Carbine until 80 per cent local content.

In 2006, the then Defence Minister Najib Razak had presented a letter of intent to SMEO for the procurement of 14,000 M4 Carbine from Colf Defence LLC in a RM70mil deal. The U.S Congress approved the deal in 2007.

According to SMEO statement made by its executive chairman Ahmad Johan in last year, SMEO will invest RM36.4 million between 2010 and 2011 in development of the M4 carbine.

“The company had supplied 14,000 M4 carbine rifles for the Malaysian Armed Forces and delivery of the weapons was made to the Ministry of Defence (Mindef) in mid-2008.”

Variant of M4 Carbine shown at DSA 2010.


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