AKINCI
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Defence Minister Datuk Seri Zahid Hamidi
Previously, Malaysia purchased the assets and equipment from abroad no such thing as a local defence industry. Datuk Seri Najib Razak when he was defence minister set up the National Defence Industry Council. When I took over, I expanded it into the National Defence, Security and Enforcement Industry Council meaning the policing and enforcement units (are included). So it consists of elements such as an offset programme; transfer of technology; transfer of intellectual property rights (IPR); right to expand the industry; and the right to sell the assets and equipment meaning we are not only the end user, but we are also getting many other benefits from conditions imposed for the purchasing of products.

For instance, when we work with FNSS Savunma Sistemeleri A.S, Turkey, a military vehicle producer in Turkey, the hull of the ships are designed by them based on our input the end user. But we specify that the materials would be imported by us, by Boustead Naval Shipyard (BNS). The fabrication has to be done locally, but if they were to supervise the fixing of the equipment inside (system integration) the equipment we, the end user, decide, then we appoint 600 over vendors to come up with their specifications according to our needs. Maybe for one piece of equipment, we give the vendors 10 or 20 different tenders, we choose the right price and duration of delivery, then we integrate the system. So with that kind of system integration, we also get transfer of technology and knowledge.
Even on the IPR, Turkey is sincere. We have previously produced first generation petrol vessels (PVs) with BNS. Now we are talking about second generation PVs which is literally combatant ships, meaning warships.
theSun