Local Industry Can Reduce Military Vehicle Procurement Costs - Khaled

HULU SELANGOR, Oct 7 (Bernama) -- Efforts by local defence companies to develop vehicle chassis domestically can help reduce the cost of procuring the country's defence assets, while increasing local content in line with the aspirations of the National Defence Industry Policy (DIPN).

Defence Minister Datuk Seri Mohamed Khaled Nordin said chassis components account for about 30 per cent of a land vehicle asset, making them an important component in efforts to strengthen the local defence industry.

"We know that when procuring any vehicle, each vehicle has various components, and we want to ensure that at least 30 per cent of each asset uses local components.

"Not only can we meet the local component requirement, but since they are produced as local products, they can also help us manage the cost of a vehicle," he said.

He said this at a press conference after a working visit to local defence supplier High Point Worldwide Sdn Bhd (HPWW) here today, which was also attended by Defence Ministry Secretary-General Datuk Lokman Hakim Ali and Chief of Army General Tan Sri Azhan Md Othman.

Mohamed Khaled said besides helping to reduce the cost of asset procurement, the ability to develop chassis locally and establish a local vendor ecosystem could open up opportunities for the country's defence industry to penetrate the global market.

In this regard, he welcomed HPWW's initiative to develop two types of locally produced chassis for military vehicles, both of which are expected to be completed next year.

Meanwhile, Mohamed Khaled said the Ministry of Defence (MINDEF) would not extend maintenance, repair and overhaul (MRO) contracts to foreign companies after the warranty period expires, but would instead give priority to local companies.

He said the move was aimed at reducing the country's dependence on external parties, while strengthening the capabilities of the local defence industry ecosystem.

The minister said there are currently 18 foreign companies from various countries holding MRO contracts worth hundreds of millions to billions of ringgit.

During the visit, he also officiated the name of HPWW's three-tonne general-purpose truck, which was named "Rentas".

Mohamed Khaled said MINDEF had agreed to procure 34 of the vehicles, in addition to 100 "Kala" High Mobility Reconnaissance Vehicles (HMRV) and 163 "Tedung" weapon carriers produced by the same company.

He said a total of 526 vehicles of various types, involving about 18 variants ordered from the company for use by the Army, would begin to be delivered in stages from the end of this month until 2028.

Mohamed Khaled also expressed his appreciation to HPWW for its concern for the welfare of Malaysian Armed Forces (MAF) veterans, with the group making up 15 per cent of its total workforce.

He described the initiative as a commendable effort in line with the ministry's aspiration to ensure the socioeconomic well-being and welfare of personnel who have completed their service continue to be safeguarded.

-- BERNAMA