HULU SELANGOR: Foreign defence companies will have to work with or develop domestic firms to remain involved in Malaysia's defence sector.

Defence Minister Datuk Seri Mohamed Khaled Nordin said the government would no longer renew maintenance, repair and overhaul (MRO) contracts with foreign companies, except for work covered by warranties.

"As I announced in Parliament, that all MRO work, except work involving warranty periods, will no longer be awarded to foreign companies.

"Currently, there are 18 foreign companies from various countries still carrying out MRO work for us.

"They must find a way either to work with local companies or develop local companies," he said after a working visit to local defence firm High Point Worldwide Sdn Bhd here today.