Kuala Lumpur (VNA) – Malaysia has launched the National Defence Industry Policy (NDIP) that aims to reduce its dependence on external parties in matters of security and defence and build a self-reliant, sustainable and resilient local defence industry.
Speaking at the NDIP launch ceremony, Malaysian Prime Minister Anwar Ibrahim stressed that the new defence industry policy is aligned with the requirements of the times and will help address difficulties faced by the Malaysian Armed Forces in recent years.
The NDIP is built on four main pillars: strengthening governance and institutional frameworks; developing technological capabilities; consolidating the domestic defence ecosystem and supply chain; and enhancing global competitiveness of Malaysia’s defence industry.
At the ceremony, Minister of Defence Mohamed Khaled Nordin noted that amid an increasingly complex, fragile and unstable global security environment, Malaysia needs to enhance its defence capacity by accelerating the development of its domestic defence industry.
He emphasised that the success of the NDIP hinges on building a comprehensive ecosystem encompassing strong government commitment, reforms in defence procurement policies, effective technology transfer, and strengthened research and development (R&D).
Among the key reforms outlined were the setting of a minimum local content of 30% for each defence procurement, in addition to the assertion that all maintenance, repair and overhaul (MRO) activities must be carried out by local companies, except during the warranty period which can only be handled by original equipment manufacturers (OEMs).
Any local company that fails to innovate, increase local content or reduce costs, their MRO contracts can be terminated because our priority is the national interest.
In terms of technology transfer, Mohamed Khaled said the Industrial Collaboration Programme (ICP) will be implemented more aggressively and targetedly, with emphasis only on local companies that are truly capable of leveraging technology and producing high-value products.
He also stressed the important role of R&D as a catalyst for the growth of the defence industry, with the support of government funds and the implementation of the ICP.
Alongside the launch of the NDIP, the Ministry of Defence introduced the Defence Industry Portal, which will serve as a platform for ICP applications, R&D funding, and defence-related technology services./.
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