DSA 2022: Benefits of Malaysian offset programme remain unclear
The AV4 Lipanbara for the Malaysian Army was procured from Chaiseri in Thailand. (Gordon Arthur)
Malaysia runs a defence offset programme, but there are weaknesses in the way it is being monitored and evaluated.
The Malaysian Auditor General’s report released on 22 March stated that the MoD’s Industrial Collaboration Programme (ICP) has benefited recipients. Nevertheless, the report concluded that the MoD has not comprehensively evaluated the ICP’s results and its long-term effects.
The MoD’s management of its ICP in the 2018-20 timeframe was one matter covered in the Auditor General’s report.
The ICP comprises offset obligations for all MoD procurements, services and work contracts. These are implemented on contracts worth RM50 million ($11.9 million) or more for foreign companies and RM100 million and above for local companies.
A total of RM31.278 billion of ICP
Already have an account? Log in
Want to keep reading this article?
More from Defence Notes
-
![Malaysia’s defence budget sets out major procurement goals for 2026]()
Malaysia’s defence budget sets out major procurement goals for 2026
The country has allocated RM21.70 billion for defence spending next year, with some major procurements set to be initiated across the country’s army, navy and air force.
-
![How Canada plans to “seize” the opportunity to increase investments in defence]()
How Canada plans to “seize” the opportunity to increase investments in defence
The Canadian Department of National Defence has been increasing efforts to accelerate the acquisition of new equipment and modernise its in-service inventory.
-
![Palantir and Boeing partner up to bring AI to defence manufacturing]()
Palantir and Boeing partner up to bring AI to defence manufacturing
The partnership with the US airframer will see Palantir’s AI software leveraged to help streamline data analytics across Boeing’s 12 factories on defence and classified programmes.
-
![DroneShield to double its US footprint to meet growing demand for counter-UxS capabilities]()
DroneShield to double its US footprint to meet growing demand for counter-UxS capabilities
DroneShield disclosed to Shephard its plans to increase its workforce and manufacturing capacities while strengthening partnerships with US suppliers.
-
![Singapore’s DSTA seeks wider partnerships to advance robotics and AI capabilities]()
Singapore’s DSTA seeks wider partnerships to advance robotics and AI capabilities
The technology organisation is expecting a significant rise in the number of staff working across robotics and digital solutions as it becomes more of a focal point.
