Our story

About Us

About Us

The SME Ordnance Sdn Bhd company (SMEO), formerly known as Syarikat Malaysia Explosive Sdn Bhd, is a Malaysian defence company that specialises in the manufacturing and marketing of ordnance. The company is located in Batu Arang, Selangor.

SMEO is a subsidiary company of National Aerospace and Defence Industries Sdn Bhd.

SME Ordance was created in 1969 as a joint venture company with equity participation between the Government of Malaysia, Dynamit Nobel of Germany, Oerlikon Machine Tools of Switzerland and two local partners namely Syarikat Permodalan Kebangsaan and Syarikat Jaya Raya Sdn Bhd. The Malaysian government later acquired all shares in 1974, making SMEO a government-owned company. In 1991, SMEO acquired a licence to manufacture Steyr AUG rifles. Joint production with Steyr later started in 2003 and 2004.

On 28 September 1993, SMEO was approved by Royal Ordnance Division, British Aerospace (BAe) as the preferred suppliers of weapons and ammunition. The Standards and Industrial Research Institute of Malaysia (SIRIM) bestowed & registered SMEO’s quality system as compliant with MS ISO 9002:1991 systems on 7 December 1993.

SME Ordnance had acquired the licence to manufacture M4 carbines in 2006-2007 with Colt Defence, as announced by Datuk Seri Najib Tun Razak after he gave SMEO a letter of intent to procure 14,000 rifles to replace the Steyr AUG. In 2009, SMEO announced that they would invest RM36.4 million for further research and development into the M4. The amount consists of RM26.4 million, which will be for the purchase of machinery and RM10 million for the buildings.14,000 M4s will be supplied to the Malaysian army. Under the ASEAN Defence Industry Collaboration programme, Malaysia plans to produce the M4 carbine together with Indonesia and Thailand.

Our Mission

To achieve excellence in all aspects of our business activities through business diversity embracing advance in technology (information, engineering, manufacturing, design, etc) and adaptability to change in order to sustain the competitiveness in the global market

Our Vision

To be an internationally recognized organization in which our employees are recognized as an invaluable asset, teamwork is the norm, continuous improvement and quality are everyone’s personal objective and contributing towards the growth of the organization is an enjoyable and rewarding experience.

Our Philosophy

To judiciously invest in projects that will enhance the country’s defence and technological capabilities especially in our effort to increase the local contents in our entire product and also to pursue our endeavour to provide better support to the nation requirements

Our Goals

To build successful business nationally and internationally. To have adequate financial resources to sustain the constant cycle of renewal and growth in our business activities. To achieve a well-balanced portfolio of investment with regard to risk and return and to manage these operations at the highest level of efficiency and transparency. To recognize and to discharge appropriately our responsibilities to the country and the community within which we operate and are accountable. To establish ‘SME’ as a household name in the industry, synonymous with the best in quality, value and realiability.