Main headlines from this issue

Switzerland anchors offsets in law for the first time

The revised Swiss Military Act, which came into force on 1 June 2026, establishes for the first time in Switzerland a legal basis for offset obligations in their defence procurement. The Swiss Federal Council will release a dedicated ordinance in 2027 to also define the detailed implementation of offsets.

Japan reviews defence industrial policy, considers FMS-like framework

Japan is considering introducing a government-backed defence export framework modelled on the US’s Foreign Military Sales (FMS) programme. Under the proposed framework, the Japanese government would become the primary contracting authority for overseas sales of Japanese defence equipment.

KNDS wins long overdue Malaysian howitzer contract

Malaysia has contracted KNDS and its Malaysian partner Advanced Defence Systems (ADS) to supply 18 Caesar 155mm self-propelled howitzer systems for its Armed Forces. The deal, announced on 16 June, includes know-how transfer, a production licence, and long-term industrial capability development in Malaysia.

India’s MKU to develop and localise electro-optics systems in Indonesia

India’s MKU Limited has signed an agreement with Indonesia’s PT Republikorp to jointly develop and localise electro-optic systems in Indonesia. The partnership is centred around technology transfer, joint manufacturing, local certification, and the integration of MKU’s optronics portfolio into Indonesia’s defence ecosystem.

Latvia’s Origin Robotics wins French drone contract

France has awarded Latvian company Origin Robotics a contract to supply its Blaze autonomous interceptor drone system to the French defence forces. Origin Robotics will partner with local company DSV to establish assembly and manufacturing capabilities for the system in France through a transfer of technology.

Lithuania to join CAVS programme; Patria signs first local partnership

In 2027, Lithuania will join the Common Armoured Vehicle System (CAVS) programme led by Finland’s Patria. Lithuania selected the Finnish prime’s 6×6 platform for its future armoured vehicle fleet on 27 May. Subsequently, in June, Patria launched its first industrial partnership in Lithuania to support local production.