29 January 2018 |  UNIKL Asia Rail Centre, CHERAS


Yang Berhormat Dato’ Sri Ismail Sabri Yaakob, Minister of Rural and Regional Development, Malaysia

Yang Berbahagia Dato’ Dr Awang Adek Hussin, Chairman of MARA

Yang Berhormat Dato’ Sri Dr Adham Baba, Pro-Chancellor and Chairman of Universiti Kuala Lumpur (UniKL)

Yang Berusaha Encik Zairi Mat Ali, Undersecretary, Government Procurement Division, Ministry of Finance (MOF)

Dato’-Dato’, distinguished guests, senior management and officers from respective ministries, agencies and private sectors.

Our industrial collaborators, CRRC Zhozhou Locomotive Co. and Mitsubishi Heavy Industries (MHI).

Members of Media

Ladies and Gentlemen

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

  1. First and foremost, I would like to express my deepest appreciation to our Guest of Honor, Yang Berhormat Dato’ Sri Ismail Sabri Yaakob, Minister of Rural and Regional Development, Malaysia for spending time off from his busy and demanding schedule, to be here with us today in witnessing one of the historic events in the history of ICP implementation. I also would like to acknowledge our international industrial partners, CRRC Zhozhou Locomotive Co. and Mitsubishi Heavy Industries (MHI). I deeply appreciate each and every one of your presence today.
  1. For your information, Technology Depository Agency (TDA) is an agency under the Ministry of Finance Malaysia (MOF), mandated as the implementer of Industrial Collaboration Programme (ICP)Policy and Guidelines. Previously, ICP was known as ‘offset program’ and applicable for defence related procurements. In 2011, MOF has made a decision that scope of offset-program was to be expanded to cover non-defense procurement and has embeded it as a mandatory requirement for every Government strategic procurement. Moving forward, in 2014, MOF has revised the policy to include the needs to have ‘Offset obligations’ to the local main contractors termed as Economic Enhancement Program and therefore the policy was further enhanced as the Industrial Collaboration Programme (ICP). Among the objectives outlined in the policy is to build a sustainable and competitive local industryvia participation of local industry players (e.g. SME etc.) in the global supply chain.

Ladies and Gentlemen

  1. The ICP implementation is intended to complement various Government policies and incentives in making Malaysia as a conducive place to do business and greater market expansion, domestically and regionally. In essence, we could be assured that for every Ringgit Malaysia we spent on Government procurement, the country is getting back more value in the form of technology transfer, human capital development and local companies’ enhancement to the next level.
  1. To date, TDA is managing 90 ICP Programmestriggered from various Government strategic procurements worth about 96 billionto the extent of 2020 – 2021. The ICP Credit Value (ICV) is generated based on the level of impact and effectiveness of the ICP Project to the needs in enhancing local capability to greater height. It could be concluded that for every one Malaysia Ringgit (RM1) that is spent on the procurement, the Government is getting multiplied value returns in the form of quality investment, job creation, technical enhancement and technology transfer.
  1. Having said that, the event we are witnessing today is really an outstanding achievement for ICP implementation. Two ICP Projects from different Work Package Contractors were involved for this event. Let me put this in simple explanation.
  1. The Government of Malaysia purchased 30 sets of LRV for Ampang Line from CRRC Zhozhou Locomotive Co. This procurement has triggered ICP, in which to comply to ICP requirement, CRRC contributed Ampang Line Used LRV Car Units. This project involves contribution of two (2) Motor Car sets and two (2) Trailer Car sets to UniKL IPROM. The project valued at RM1.56 millionand worth about RM6.24 million of ICV.
  1. In a different procurement, Mitsubishi Heavy Industries (MHI) was awarded Work Package Contractor for Trackwork Package under MRT SBK Line.Under the ICP obligation, MHI has delivered an ICP Project of Railway Trackwork to UniKL Asia Rail Centre. This project involves transfer of knowledgethrough seminar and consultancy to UniKL lecturers as well as the railway trackwork for the purpose of training aid material to the university. This project valued at RM117 thousandsand worth about RM297 thousands of ICV. Both ICP projects contributed to UniKL as a stepping stone for them in developing their own railway training programme and expertise, as par as industry quality.
  1. The local higher learning institute, UniKL as the ICP Recipient for this project will definitely benefit from this technology transfer in supporting them towards educational and training activities. The students will benefit by the practical use of the training aid material with backed-up by theoretical sessions in classroom. The used LRV car units contributed are equipped with actual and complete rolling stock equipment and facilities which can be fully utilised for education aids, science terminology researches and on-site practical training purposes.
  1. The contribution of both rolling stock and the railway trackwas made possible by the successful ICP project negotiation led by TDA team as the ICP Management Unit (IMU) that takes into account local higher learning institute needs in being competitive from the perspective of technology and industrial adaption. This is another success story of having an ICP as means of industrial collaboration with mutual benefits to the stakeholders.

Ladies and Gentlemen

  • May I take this opportunity again to express my deepest appreciation to to our Guest of Honor, Yang Berhormat Dato’ Sri Ismail Sabri bin Yaakob, Minister of Rural and Regional Development, Malaysia and all stakeholders 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 and UniKL team whom have been working hard for the past weeks in ensuring the successful of today’s event.

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