SHAH ALAM: The government has approved the 5+5 long-term contract concept to provide confidence and to ensure the future of companies engaged in the defence industry, Defence Minister Datuk Seri Najib Tun Razak said.
The 5+5 concept provides for contracts to be extended for a maximum of five years after the original contracts expire.
Najib said the policy would enable local companies involved in the defence industry to make profits and at the same time recover their investments in the long run.
He said the Defence Industry Council meeting chaired by him yesterday.
“The government is identifying the type of contracts and companies which can be considered for the 5+5 scheme,” he said after the meeting.
Najib also said that Malaysia would go ahead with its programme to acquire the Man Portable Air Defence System (Manpads) to meet the country's defence requirements despite a US plan to ban such weaponry in this region.
Malaysia, being a sovereign nation, considered buying defence assets based on its needs, he said.
“There's no reason for Malaysia to stop or cancel the purchase of defence apparatus like this which we have in our hands,” he said. – Bernama
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