#MAS DAILY Industry Talks

Contracts & Agreements

• Drone Deal gains momentum: Romania and Ukraine accelerate military partnership. Ukraine and Romania are strengthening defence cooperation following a meeting between David Aloian, Deputy Secretary of Ukraine’s National Security and Defence Council, and Romanian official Sorin Moldovan. Talks focused on expanding the “Drone Deal” format, seen as key for joint drone development and production under the European SAFE programme. The two countries are also preparing joint projects under “Build with Ukraine” and “Build in Ukraine,” with an emphasis on regional security and Black Sea cooperation. Officials reaffirmed their commitment to a long-term strategic partnership in security and defence. (MAS)

• US invests in undersea warfare: $75M contract to modernise combat systems. The US Navy’s Submarine Warfare Center has awarded Arcfield a $75 million contract to continue developing combat control systems for US submarines. The programme focuses on upgrading the AN/BYG-1 platform, a next-generation submarine command and control system integrating sensor data, weapons targeting, and tracking of enemy vessels and submarines. The contract includes software and hardware development, cybersecurity, and systems integration, with officials saying the upgrades will improve fleet readiness against future undersea threats. The AN/BYG-1 system is already used by the US and Australian navies and may be integrated into future SSN-AUKUS nuclear submarines developed with the UK. (The Defense Post)

• Türkiye launches first corvette for Malaysia: strategic Asia-Pacific deal. Turkish naval engineering company STM has launched the first of three corvettes for the Royal Malaysian Navy under the LMS Batch-2 programme in Istanbul. The vessel, “Tunku Laksamana Abdul Jalil,” marks Türkiye’s first corvette export to the Asia-Pacific region and a milestone in defence cooperation between Ankara and Kuala Lumpur. The remaining ships are expected to be launched within the year and delivered by 2027, equipped with advanced weapons and sensor systems. The programme is seen as a major success for Türkiye’s defence industry and its first government-to-government agreement of this kind with Malaysia. (Naval News)

Innovations

• Reaper becomes more lethal: US equips MQ-9 drones with GBU-39B smart bombs. The US Air Force has integrated the GBU-39B Small Diameter Bomb onto MQ-9 Reaper drones, significantly expanding their long-range precision strike capability. The weapon can hit targets with meter-level accuracy and glide tens of kilometres after release, supporting special operations missions while reducing collateral damage. Operated by the 27th Special Operations Wing, the upgraded drones can carry multiple low-yield munitions per sortie, improving endurance and battlefield support in contested airspace. (The Drone Front)

• Artificial intelligence surges in the Pentagon: usage up nearly 1,800% in one year. The US Department of Defense has seen explosive AI adoption, rising from about 80,000 to 1.5 million users in a single year, according to senior technology official Emil Michael. Announced at Special Operations Forces Week 2026 in Florida, the data reflects widespread use of AI tools ranging from administrative software to classified intelligence analysis platforms. Officials note that integrating rapid commercial AI advances into military operations remains a major challenge for one of the world’s most complex organisations. (The Defence Blog)

• Russia unveils “Citadel”: new short-range anti-drone defence system. Russian defence conglomerate Rostec has introduced the ZAK-30 “Tsitadel” system, a 30mm anti-aircraft platform designed to destroy drones using programmable airburst ammunition. Instead of direct hits, shells detonate near targets to create a fragmentation cloud, improving efficiency against fast, small UAVs. Rostec claims the system has already been tested in real combat conditions in Ukraine and reduces ammunition consumption while extending operational endurance. (The Defence Blog)

• UK launches new security shield: SENSOREM project announced. The UK Ministry of Defence has launched the preliminary phase of Project SENSOREM, aimed at modernising surveillance and security across defence sites. The initiative seeks scalable, technology-enabled monitoring systems for military bases and critical infrastructure, with industry proposals invited by June 2026 and potential contracts running from 2026 to 2029. The current phase is a market consultation rather than a formal procurement process. (UK Defence Journal)

• NATO leans into AI and drones: underground command hub in London. NATO’s “Arcade Strike” exercise, held in a disused London Underground station, showcased future warfare concepts combining AI, drones, and subterranean command centres. Around 500 personnel processed over 10 terabytes of data daily using Project Asgard, an AI-driven system integrating satellite, sensor, and intelligence feeds for faster decision-making. The exercise also introduced the UK’s 9 Deep Recce Strike Brigade, equipped with long-range drones and strike systems. General Chris Donahue stressed that a fully capable NATO strategic force is “not optional, but essential.” (UK Defence Journal)

Events & Debates

• Alarming report: NATO faces major logistics bottlenecks in a war with Russia. A Council on Geostrategy study warns that NATO supply lines in Northern Europe are highly vulnerable to sabotage, drone strikes, and missile attacks, potentially risking frontline collapse in a major conflict. The report highlights weak infrastructure, limited dedicated convoy protection, and overreliance on commercial logistics networks. It calls for hardened infrastructure, integrated civilian-military logistics, and mobile air defence and counter-drone units to secure supply routes. (UK Defence Journal)