
Mindef to develop system to monitor contract performance
Deputy Defence Minister Adly Zahari said the move followed findings in the 2025 Auditor-General's Report Series 2, which highlighted weaknesses in the enforcement of contract terms, particularly concerning the issue of late penalties.

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Barnama
12 hours ago
- Barnama
Tabung Pahlawan Campaign Has Raises RM2.18 Mln
ALOR GAJAH, July 27 (Bernama) -- The 2025 Tabung Pahlawan Campaign, launched in conjunction with Warriors' Day, has raised RM2.186 million as of July 24, reflecting the people's continued support towards the welfare of Malaysian Armed Forces (MAF) veterans. Deputy Defence Minister Adly Zahari said to widen outreach and simplify contributions, the ministry had also introduced a QR code donation campaign as an alternative, targeting a minimum of RM1 from every Malaysian. 'Malaysia has more than 34 million people, imagine if every person contributes at least RM1, the impact would be tremendous. 'That's why we've launched the QR code campaign, which is now widely circulated via social media and official government channels. We hope this will encourage more people to contribute,' he told Bernama after attending a high tea event with Melaka MAF veterans, in conjunction with the 2025 Warriors' Day celebration at Dataran Gangsa, here today. Also present were Veterans' Affairs Department (JHEV) director-general Maj Gen Datuk Semaon Marjuki and JHEV Melaka and Negeri Sembilan director, Major Muhammad Zarifi Tumin. Earlier at the event, 120 MAF veterans from Melaka, representing 22 associations, were celebrated. They were presented with contributions, including Cost of Living Aid, Higher Education Aid, Home Repair Assistance, and 'Bakul Rahmah' food baskets. At the same time, Adly said 151,000 MAF veterans had registered and were now using the Veteran Digital Card, which was introduced in September last year. 'With the digital card, veterans no longer need to carry a physical card as all their information is now accessible on their smartphones. So for those who haven't made the switch, we strongly encourage them to do so and to update their information. 'Although the physical card is still in use, the digital version offers easier access for members, especially to information on health, welfare, and other services,' he said.

Malay Mail
a day ago
- Malay Mail
Spy cockroaches and AI robots: Germany bets big on future warfare as defence startups reshape the battlefield
MUNICH, July 27 — For Gundbert Scherf — the co-founder of Germany's Helsing, Europe's most valuable defence start-up — Russia's invasion of Ukraine changed everything. Scherf had to fight hard to attract investment after starting his company — which produces military strike drones and battlefield AI — four years ago. Now, that's the least of his problems. The Munich-based company more than doubled its valuation to US$12 billion (RM50.6 billion) at a fundraising last month. 'Europe this year, for the first time in decades, is spending more on defence technology acquisition than the US,' said Scherf. The former partner at McKinsey & Company says Europe may be on the cusp of a transformation in defence innovation akin to the Manhattan Project — the scientific push that saw the US rapidly develop nuclear weapons during World War Two. 'Europe is now coming to terms with defence.' Reuters spoke to two dozen executives, investors and policymakers to examine how Germany — Europe's largest economy — aims to play a central role in the rearming the continent. Chancellor Friedrich Merz's government views AI and start-up technology as key to its defence plans and is slashing bureaucracy to connect startups directly to the upper echelons of its military, the sources told Reuters. Shaped by the trauma of Nazi militarism and a strong postwar pacifist ethos, Germany long maintained a relatively small and cautious defence sector, sheltered by US security guarantees. Germany's business model, shaped by a deep aversion to risk, has also favoured incremental improvements over disruptive innovation. No more. With US military support now more uncertain, Germany — one of the biggest backers of Ukraine — plans to nearly triple its regular defence budget to around €162 billion (RM739 billion) per year by 2029. Much of that money will go into reinventing the nature of warfare, the sources said. Helsing is part of a wave of German defence start-ups developing cutting-edge technology, from tank-like AI robots and unmanned mini-submarines to battle-ready spy cockroaches. 'We want to help give Europe its spine back,' said Scherf. Some of these smaller firms are now advising the government alongside established firms — so-called primes such as Rheinmetall and Hensoldt — that have less incentive to focus primarily on innovation, given their long backlogs for conventional systems, one of the sources said. A new draft procurement law, approved by Merz's cabinet on Wednesday, aims to reduce hurdles for cash-strapped start-ups to join tenders by enabling advance payment to these firms. The law would also entitle authorities to limit tenders to bidders inside the European Union. Marc Wietfeld, CEO and founder of autonomous robots maker ARX Robotics, said a recent meeting with German defence minister Boris Pistorius hammered home how deep the rethink in Berlin goes. 'He told me: 'Money is no longer an excuse — it's there now'. That was a turning point,' he said. A Rheinmetall logo is seen on a vehicle, on the day German Defence Minister Boris Pistorius and French Armed Forces Minister Sebastien Lecornu visit a plant of ammunition maker Rheinmetall, in Unterluess, Germany July 24, 2025. — Reuters pic Germany in the lead Since Donald Trump's return to the political stage and his renewed questioning of America's commitment to Nato, Germany has committed to meet the alliance's new target of 3.5 per cent of GDP on defence spending by 2029 — faster than most European allies. Officials in Berlin have emphasised the need to foster a European defence industry rather than rely on US companies. But the hurdles towards scaling up industry champions in Germany — and Europe more broadly — are considerable. Unlike in the United States, the market is fragmented in Europe. Each country has its own set of procurement standards to fulfil contracts. The United States, the world's top military spender, already has an established stable of defence giants, like Lockheed Martin and RTX, and an advantage in key areas, including satellite technology, fighter jets and precise-guided munitions. Washington also began boosting defence tech startups in 2015 — including Shield AI, drone maker Anduril and software company Palantir — by awarding them parts of military contracts. European startups until recently languished with little government support. But an analysis by Aviation Week in May showed Europe's 19 top defence spenders — including Turkiye and Ukraine — were projected to spend 180.1 billion this year on military procurement compared, to 175.6 billion for the United States. Washington's overall military spending will remain higher. Hans Christoph Atzpodien, head of Germany's security and defence sector association BDSV, said one challenge was that the military's procurement system was geared toward established suppliers and not well suited to the fast pace that new technologies require. Germany's defence ministry said in a statement it was taking steps to accelerate procurement and to better integrate startups in order to make new technologies quickly available to the Bundeswehr. Annette Lehnigk-Emden, head of the armed forces' powerful procurement agency, highlighted drones and AI as emerging fields that Germany needs to develop. 'The changes they're bringing to the battlefield are as revolutionary as the introduction of the machine gun, tank, or airplane,' she told Reuters. A digital illustration released by Swarm Biotactics shows what they describe as cyborg cockroaches equipped with specialised backpacks that enable real-time data collection via cameras. — SWARM Biotactics handout pic via Reuters Spy cockroaches Sven Weizenegger, who heads up the Cyber Innovation hub, the Bundeswehr's innovation accelerator, said the war in Ukraine was also changing social attitudes, removing a stigma towards working in the defence sector. 'Germany has developed a whole new openness towards the issue of security since the invasion,' he said. Weizenegger said he was receiving 20-30 Linkedin requests a day, compared to maybe 2-3 weekly back in 2020, with ideas for defence technology to develop. Some of the ideas under development feel akin to science fiction — like Swarm Biotactics' cyborg cockroaches that are equipped with specialised miniature backpacks that enable real-time data collection via cameras for example. Electrical stimuli should allow humans to control the insects' movements remotely. The aim is for them to provide surveillance information in hostile environments — for example information about enemy positions. 'Our bio-robots — based on living insects — are equipped with neural stimulation, sensors, and secure communication modules,' said CEO Stefan Wilhelm. 'They can be steered individually or operate autonomously in swarms. In the first half of the 20th century, German scientists pioneered many military technologies that became global standards, from ballistic missiles to jet aircraft and guided weapons. But following its defeat in World War II, Germany was demilitarised and its scientific talent was dispersed. Wernher von Braun, who invented the first ballistic missile for the Nazis, was one of hundreds of German scientists and engineers transported to the United States in the wake of World War II, where he later worked at Nasa and developed the rocket that took Apollo spacecraft to the Moon. In recent decades, defence innovation has been a powerful driver of economic progress. Tech like the internet, GPS, semiconductors and jet engines originated in military research programmes before transforming civilian life. Hit by high energy prices, a slowdown in demand for its exports and competition from China, Germany's US$4.75 trillion economy contracted over the last two years. Expanding military research could provide an economic fillip. 'We just need to get to this mindset: a strong defence industrial base means a strong economy and innovation on steroids,' said Markus Federle, managing partner at defence-focused investment firm Tholus Capital. Helsing employees demonstrate their technology to journalists at their headquarters in Munich July 9, 2025. — Thomas Effinger Photography/Helsing handout pic via Reuters Escaping 'the valley of death' Risk aversion among European investors had in the past disadvantaged startups, which struggled to get the capital they need to survive the 'valley of death' — the critical early stage when costs are high and sales low. But a boost in defence spending by European governments following Russia's invasion of Ukraine has investors looking for opportunities. Europe now boasts three start-ups with a unicorn valuation of more than US$1 billion: Helsing, German drone maker Quantum Systems, and Portugal's Tekever, which also manufactures drones. 'There's a lot of pressure now on Germany being the lead nation of the European defence,' said Sven Kruck, Quantum's chief strategy officer. Germany has become Ukraine's second-biggest military backer after the United States. Orders that might once have taken years to approve now take months and European startups have had the opportunity to test their products quickly in the field, several sources said. Venture capital funding of European defence tech hit US$1 billion in 2024, up from a modest US$373 million in 2022, and is expected to surge even more this year. 'Society has recognised that we have to defend our democracies,' said Christian Saller, general partner at HV Capital, an investor in both ARX and Quantum Systems. Venture capital funding has grown faster in Germany than elsewhere, according to a data analysis by Dealroom for Reuters. German defence startups have received US$1.4 billion in the last five years from investors, followed by UK, the data shows. Jack Wang, partner at venture capital firm Project A, said many German defence startups — rooted in the country's engineering prowess — are good at integrating established components into scalable systems. 'Quality of talent in Europe is extremely high, but as a whole, there's no better country, no better talent that we've seen other than in Germany,' he said. Weakness in Germany's automotive industry means there is production capacity to spare, including in the Mittelstand: the small and medium-sized enterprises (SMEs) that form the backbone of Germany's economy. Stefan Thumann, CEO of Bavarian startup Donaustahl, which produces loitering munitions, said he receives 3 to 5 applications daily from workers at automotive companies. 'The startups just need the brains to do the engineering and prototyping,' he said. 'And the German Mittelstand will be their muscles.' — Reuters


The Star
2 days ago
- The Star
Trump administration issues plan to limit AI exports to China
The White House on Wednesday released proposals to restrict exports of American AI equipment and limit the spread of Chinese AI models as part of a sweeping plan to shape the rules governing the fast-moving technology. The 28-page AI Action Plan marks US President Donald Trump's administration's first comprehensive strategy on the topic and comes as national security hawks have raised concerns that superior American chips may reach China – including through third countries – and advance its AI and military development. Under the plan, the US Commerce Department will lead an effort to develop new export controls on chipmaking components to close 'loopholes' in current restrictions that now focus on major systems. The department will also lead efforts to increase the monitoring of exported US chip end users and to explore using new chip location verification features to keep them out of 'countries of concern' – a term often used to refer to China, Iran, North Korea and Russia, among others. The plan also directs the Defence and Commerce departments to coordinate with allies on adopting US export controls and to prohibit American adversaries from being involved in their defence supply chains. 'Artificial intelligence is a revolutionary technology with the potential to transform the global economy and alter the balance of power in the world,' White House AI tsar David Sacks said in a written statement. 'To win the AI race, the US must lead in innovation, infrastructure, and global partnerships ... This Action Plan provides a road map for doing that,' he added. The Trump administration decision last week to allow American chipmaker Nvidia to sell its H20 chips to China reinvigorated furious debate about how to extend the US technological lead without compromising national security. That came months after the administration revoked a rule put in place under former President Joe Biden that limited how much US AI computing capability certain countries could access through imported US chips. American AI companies face increased competition from such Chinese rivals as Hangzhou-based DeepSeek, which sent global shock waves earlier this year when it released powerful AI models built far more cheaply than many had thought possible. Trump has previously warned of China's potential to surpass the US in the race for AI dominance. Speaking about the White House plan at an AI summit on Wednesday, Trump said he wants to make the US an 'AI export powerhouse' while maintaining 'necessary protections for our national security'. Commerce Secretary Howard Lutnick and Secretary of State Marco Rubio 'will work to rapidly expand American AI exports of all kinds, from chips to software to data storage', he said, before signing executive orders to fast-track AI development and promote exports. Ryan Fedasiuk, a former technology policy advisor in the State Department's Office of China Coordination, said that taken together, the export control proposals 'thread a difficult needle' in the lead-up to US-China trade talks in Stockholm next week. 'They tighten technology controls without risking an existential blow to the provisional trade deal struck in London, and they focus on enforcement gaps rather than adding sweeping new restrictions,' he said. The real impact of the plan will depend 'entirely' on its execution, Fedasiuk added. 'Allied coordination is where the rubber meets the road. Export controls only work if they're multilateral, and we've seen too many cases where US restrictions just pushed business to Dutch or Japanese competitors.' The new administration blueprint also makes several recommendations focused on countering the spread of Chinese models. To ensure 'that free speech flourishes in the era of AI', the Commerce Department is to evaluate advanced Chinese AI models for alignment with Communist Party talking points and censorship practices. Along with the US State Department, Commerce will lead a campaign to 'vigorously advocate' for international AI governance approaches that 'counter Chinese influence' at diplomatic and standard-setting bodies. Too many existing efforts 'have advocated for burdensome regulations, vague 'codes of conduct' that promote cultural agendas that do not align with American values, or have been influenced by Chinese companies attempting to shape standards for facial recognition and surveillance', the plan said. The two departments will also lead a new initiative to share technology protection measures, including measures in basic research and higher education, with allies and partners. To promote the use of American AI technology rather than that of adversaries, the Commerce Department will gather industry proposals for 'full-stack AI export packages' – bundled systems that include AI hardware, software, and related services intended for export. In recent years, the US has pushed its European and Asian allies to stop exports of advanced chipmaking equipment to China. Wednesday's document carries a thinly veiled threat to allies, warning that failure to align with US export controls could trigger punitive trade measures through secondary tariffs. - SOUTH CHINA MORNING POST