KUALA LUMPUR: Foreign firms maintaining military assets have been told their contracts will not be renewed automatically, with local companies expected to take over the work, says the Defence Ministry.
All maintenance, repair and overhaul (MRO) work for the armed forces must be carried out by local companies, except jobs under warranty that can be handled by original equipment manufacturers, the ministry said in a written parliamentary reply to Jempol MP Datuk Shamshulkahar Mohd Deli.
"The ministry has stressed to foreign MRO companies that contracts that end will not be renewed automatically. Instead, local companies need to be ready to take over the MRO services," it said.
Local firms awarded MRO contracts must keep improving, including by raising local content and training local talent, it added.
They are also expected to reduce the costs and charges imposed on the government.
Shamshulkahar had asked how the ministry would strengthen local firms in maintaining military assets and producing spare parts, to reduce reliance on foreign parties.
The ministry said it would use the Industrial Collaboration Programme to transfer technology from manufacturers to local firms.
The focus will be on companies able to develop their own products and join global defence supply chains.
In April, Defence Minister Datuk Seri Mohamed Khaled Nordin said eight local companies had received industrial collaboration offers worth RM1.4bil to build up their warship maintenance capability.
