SPEECH OF YBHG. DATO’ ZAILANI SAFARI

CHIEF EXCUTIVE OFFICER OF TECHNOLOGY DEPOSITORY AGENCY (TDA)

HANDOVER CEREMONY OF CATENARY EYE SYSTEM FROM MMJV TO KTMB ON 28 FEB 21017

 

YB Dato’ Aziz Kaprawi

Deputy Minister, Ministry of Transport (MOT)

 

YB Dato’ Ir. Hj. Nawawi Hj. Ahmad

Chairman, Keretapi Tanah Melayu Berhad (KTMB)

 

His Excellency Mr. Yoshi Kodama

Deputy Ambassador, Embassy of Japan

 

En Zairi Mat Ali

Undersecretary, Government Procurement Division, Ministry of Finance (MOF)

 

Honorable Mr. Hiroshi Toke

Executive Officer, Rail System Business Unit, Meidensha Corporation

 

Mr. Miyoshi Kobayashi

Managing Director of MEIDEN-Meiden Malaysia Joint-Venture Sdn. Bhd. (MMJV)

 

Distinguished guests, senior management and officers from respective ministries, agencies and private sectors.

 

Our industrial collaborator, Meidensha-Meiden Malaysia Joint Venture Sdn. Bhd. (MMJV)

 

Members of Media

 

Ladies and Gentlemen

 

Assalamualaikum w.r.b.t., and good morning,

  1. First and foremost, allow me to express my deepest appreciation to our Guest of Honor, YB Dato’ Aziz Kaprawi, Deputy Minister of Ministry of Transport (MOT) for spending off his hectic and very demanding time, to be here with us today in witnessing a historic event in the history of ICP implementation. I would like also to acknowledge our industrial stakeholders present here including from Meidensha Corporation who came all the way from Japan for today’s event. I deeply appreciate your presence today.
  1. As you may aware, TDA is an agency established under the purview of Ministry of Finance (MOF) as the Implementer of ICP Policy and Guidelines. The ICP, or the Offset back-then was actually initiated during late 80s when MOF issued the Treasury Circular Letters No. 11, 1987 Guideline for implementation of Countertrade in Government Procurement. In 2002, a study on Offset Program of the National Defence Procurement and this was when idea of having TDA as governing-body was mooted during one of Cabinet Meetings.
  1. TDA, which back-then under the purview of Prime Minister Department was entrusted to manage the offset program among others for d Trent 900 Engines Procurement by Penerbangan Malaysia Berhad, the first commercial and non-defence offset management which involved Rolls Royce as the supplier and Offset Provider. I am delightful to share, that the offset program that was closed officially in 2015, has contributed in enhancing the capability of national aerospace industry, through programs such as aerospace component manufacturing, MRO certification and establishment of Aerospace Malaysia Innovation Centre (AMIC) whereby Rolls Royce is one of the lead members.
  1. This has given a basis for Ministry of Finance (MOF) to introduce Offset Program as a mandatory requirement for every Government procurement through a policy in 2011. Based on the policy, the implementation of the Offset Program also made applicable to the procurement by MRT Corporation Sdn. Bhd. for the commencement of MRT Sg. Buloh – Kajang line project development. In 2014, MOF has revised the policy to include the needs to have ‘offset obligations’ to the local main contractors and therefore the policy was further enhanced as the Industrial Collaboration Program (ICP) that consists of 3 main implementation components which are Offset, Economic Enhancement Program (EEP) and Counter-Trade. Among the objective outlined in the policy is to build a sustainable and competitive local industry via participation of local industry players (e.g. SME etc.) in the global supply chain.

Ladies and Gentlemen

  1. To date, TDA is managing 55 ICP Program triggered from various Government procurement worth about RM49.2 billion to the extent of 2020 – 2021. This number will increase from time to time based on procurement programs by the Govermenent. Currently about 7 programs have been completed and registered about RM5.134 billion worth of ICP Credit Value (ICV) which has been contributed to the current national economy. The nominal value for this programs is about RM 1 billion. The ICV was generated based on the level of impact and effectiveness of the ICP projects to the needs in enhancing local capability to greater height. It is therefore, can be concluded that for every one Malaysia Ringgit (RM1) that is spent on the procurement, the Government is getting the returns of about RM5.48 in the form of quality investment, job creation (K-Worker), technical enhancement and technology transfer.
  1. Moving towards 2021, it is expected for TDA to create more than RM68 billions of economic return to the country. Although this seems quite challenging under current economic uncertainties, the target is achievable provided there are continuous support from the Government, ministries, agencies, local industry players and ICP recipients. Therefore, it is vital for every single stakeholder to work as a team to create the effective collaborative platform in moving towards common goals, in-line with the objectives spelt out in the ICP Policy and Guidelines.
  1. Therefore, it is very important that the stakeholders to have the right mindset. For the procuring agency, it shall be deemed as an opportunity to share the economic benefits with other local industry players, for the obligors, this responsibilities shall be regarded as opportunities to create a sustainable business platform and for the recipients, this platform shall be regarded as opportunities to create win-win and sustainable businesses in complement with the obligors.
  1. Having said that, the event we are witnessing today is one of the milestone achievements, aligned with the aspiration set under the ICP implementation. This event is as a result of ICP Program in conjunction with MRT Line 1 procurement program by the Government of Malaysia. For information, Meidensha-Meiden Malaysia Joint Venture Sdn. Bhd. (MMJV), whom is one of the suppliers for MRT SBK Line project has delivered an ICP Project of Catenary Eye System under the Work Package of Power Supply & Distribution System. This project of which worth about RM24.7 million of ICV, is a breakthrough technological advancement in the area of rail preventive maintenance pioneered by Meidensha Corporation.

 

  1. The local ICP Recipient for this project, KTMB will definitely benefit from this technology transfer in supporting its MRO activities towards preventive maintenance rather than corrective maintenance that obviously will be at greater cost. Having this system also means KTMB would be able to place a local K-Worker to operate this system with value-added knowledge and having the operation at optimum performance and cost. This is another success story of having an ICP as means of industrial collaboration with mutual benefits to the stakeholders.
  1. Apart from Malaysia, other countries including Turkey, South Korea, Singapore, Japan and others have benefited from ICP or other similar activities contributing to their local industry development. TDA believes that Malaysia would attain similar or even greater achievements from this ICP implementation provided every stakeholder put synergy together in ensuring ‘value of money’ on every RM we spent on the procurement. TDA will always be pro-active in facilitating our local industry players in create to work hand-to-hand with globally renowned OEMs and quantum leap them in participating global supply chain.

Ladies and Gentlemen

  1. May I take this opportunity to again to express my deepest appreciation to YB Deputy Minister of MOT, MOF and MRT and every stakeholder that is presence in this event. We are truly glad undertaking this ICP mandate knowing to have full supports from all of you. I would like also to congratulate my TDA team whom have been working closely with other organizing committee members in ensuring the successful of today’s event.

 

Thank you very much. Assalamualaikum w.r.t.b.