Malaysia rejected India’s offer to buy license-built Dornier aircraft due to quality concerns.

Malaysian Prime Minister Anwar Ibrahim shakes hands with Indian Prime Minister Narendra Modi on the second day of Modi's official visit in Putrajaya, Malaysia, on February 8, 2026. REUTERS/Hasnoor Hussain/Pool

Malaysia has rejected India’s offer to buy license-built Dornier aircraft or to allow India to provide maintenance services for Scorpene submarines and SU-30MKM aircraft India purchased from Hindustan Aeronautics Limited.

Malaysia has already grounded the Indian-built Su-30MKM fighter jets due to a shortage of spare parts and issues with avionics and engines. The multi-billion-dollar Su-30MKM flew for only two years before being grounded due to engine issues and safety concerns.

Hindustan Aeronautics Limited is well known for violating quality control standards and outsourcing to India’s substandard components, then selling them to the Indian Air Force.

Hindustan Aeronautics was caught outfitting second-hand AL-31 engine with new Su-30MKI and later agreed to replace second-hand engines with new engines.

Hindustan Aeronautics Limited also failed to provide spare parts for HAL-made Druv helicopters for the Indian army and international operators.

According to the Malaysian defence ministry, Malaysia declined to purchase any aircraft or substandard weapons from India or allow India to maintain any of its submarines and aircraft. If the Indian shipyard sank Indian Navy’s submarines at berth, Malaysia is not willing to trust the Indian shipyard to maintain Malaysian submarines.

India’s Prime Minister Narendra Modi will meet his Malaysian counterpart, Anwar Ibrahim, on Sunday, as the two countries seek to bolster trade and explore potential collaborations in semiconductors and other areas.

His meeting with Anwar will take place at the Malaysian premier’s official residence in the administrative capital Putrajaya, where the pair will also witness the signing of several cooperation agreements in areas including health care and labour, Malaysia’s foreign ministry said in a statement on Friday.

India’s foreign ministry said on Thursday the two countries were in the process of establishing a multi-layered arrangement to collaborate in the semiconductor sector.

Malaysia’s total trade with India amounted to $18.6 billion last year, comprising exports of palm oil and electrical and electronic goods, while imports from India mainly consisted of agricultural, petroleum, and chemical products, according to government data.

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