HULU SELANGOR: Foreign companies seeking to remain involved in Malaysia’s defence sector must work with local firms or help develop domestic capabilities, says Defence Minister Datuk Seri Mohamed Khaled Nordin.
He said Malaysia had the talent and expertise to build up its defence industry, and continued dependence on foreign companies would leave the country reliant on overseas markets.
“Firstly, we will continue to depend on other countries. Even if we want to buy screws, we would have to buy them from overseas, and we would not develop our own capabilities.
“We have many technical universities, many graduates and highly skilled people. When we do this, all these efforts will create spin-off effects,” he said after a working visit to High Point Worldwide Sdn Bhd here on Wednesday (Oct 7).
Mohamed Khaled said the government had already decided that maintenance, repair and overhaul (MRO) work would no longer be awarded to foreign companies, except for work covered by warranty periods.
“There are currently 18 foreign companies from various countries still carrying out MRO work for us.
“We have made it clear that we will not renew their contracts. They have to find a way either to work together with local companies or to develop local companies,” he said.
He said the government was also pushing for greater use of locally produced components and expertise, including a requirement for at least 30% local content in certain procurement projects.
“We are emphasising the need to provide space and opportunities for local companies. At the same time, for certain procurements, we want to see 30% local content.
“In areas such as IT, we want these companies to show us a breakdown of how the work is being carried out, what is being done overseas and what is being done locally.
“This is the time for us to help the country build its capabilities and ensure that it has good assets and readiness by working together with local companies,” he said.
