 On 21 February 2001, SMEO integrated Syarikat Malaysia Explosive Technologies Sdn Bhd due to problems after the company had fulfilled their contracts to the Defence Ministry.SME Ordnance 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.