AIRCRAFT MRO, SHIPPING AMONG INDUSTRIES THAT BENEFIT FROM STA 2010, SAYS FIRST CONTROLLER

By Niam Seet Wei

KUALA LUMPUR, April 13 -- Malaysia's aircraft maintenance, repair and overhaul (MRO) industry is one of the beneficiaries of the Strategic Trade Act (STA) 2010.

According to the Ministry of International Trade and Industry’s (MITI) first strategic trade controller Datuk Mohamed Shahabar Abdul Kareem, most aircraft, aircraft engines and aviation components are controlled for export purposes by the United States (US).

bootstrap slideshow

With STA 2010 in place, he said the US would know the end users of the parts from Malaysia, and will approve the aircraft parts or components to be assembled in Malaysia.

“And that has benefited the industry in the country,” he told Bernama in conjunction with the 10th anniversary of STA 2010 recently.

Mohamed Shahabar who served as controller between 2010 and 2013 to lead the Strategic Trade Secretariat established by MITI for the implementation of STA 2010, said the shipping industry also enjoys the same benefits.

He said export control was not something alien to the US and European countries as relevant laws had been enforced there since the second world war, aiming to prevent enemies and allies from obtaining their technologies, especially military technology.

With the enforcement of STA 2010, he said the legislation could control the export, transshipment, transit and brokering of strategic items and technology, including arms and related material, as well as activities that will, or may facilitate the design, development, production and delivery of weapons of mass destruction from Malaysia to other countries.

"At the same time, Malaysia would be able to attract more high-technology and high-knowledge foreign companies to invest here, and subsequently break out from the middle-income trap to reach a high income economy status," he said.

On other benefits of the act, Mohamed Shahabar said the STA 2010 would protect Malaysia and Malaysian exporters from being exploited by proliferators, as well as those who profit from their activities without compromising legitimate trade in the strategic items concerned.

According to MITI, strategic items classified under the STA 2010 include military items, electronics, computers, materials, chemicals, microorganisms and toxins, as well as propulsion systems, space vehicles and related equipment.

"With the establishment of STA 2010, Malaysia, being a major transshipment hub, will be able to enforce control over transit or transshipment based on the strategy guidance, and prevent proliferators from sending certain items to certain countries which should not receive it,” Mohamed Shahabar said.

He added that the law would also promote Malaysia as a safe country to trade with and in the same breath contribute to global peace.

Today, he said Malaysia has seen rising awareness of the law among local exporters with 617 companies having registered as STA permit applicants to-date.

"This is a jump of 54 per cent from less than 400 recorded in 2013, showing that the awareness is at a 'very good' level from a decade ago," he added.

Malaysia started implementing the STA 2010 on Jan 1, 2011 after it was approved by Parliament on May 6, 2010.

The enforcement is in tandem with the country’s commitment to implement the United Nations Security Council Resolution 1540.

Malaysia is also the second ASEAN country to enforce the law after Singapore.

-- BERNAMA