Saturday, May 7, 2011

Do You Mean Milgem Is The Frontrunner?

I don't know if the Defence Minister is confused or what but based on the extract of the interview below, it seems the Turkish Milgem is the front runner for the SGPV project although I doubt FNSS Savunma who is the hull producer for the AV8 is also the agent/producer for SGPV hull. Nonetheless the interview is quite enlightening, especially on the Malaysian Armed Forces procurement process. To read the full interview, read it here.

What you are saying is that there can be no corruption in purchases because of the seven stages of vetting?

Previously, Malaysia purchased the assets and equipment from abroad – no such thing as a local defence industry. Datuk Seri Najib Razak when he was defence minister set up the National Defence Industry Council. When I took over, I expanded it into the National Defence, Security and Enforcement Industry Council – meaning the policing and enforcement units (are included). So it consists of elements such as an offset programme; transfer of technology; transfer of intellectual property rights (IPR); right to expand the industry; and the right to sell the assets and equipment – meaning we are not only the end user, but we are also getting many other benefits from conditions imposed for the purchasing of products.

For instance, when we work with FNSS Savunma Sistemeleri A.S, Turkey, a military vehicle producer in Turkey, the hull of the ships are designed by them based on our input – the end user. But we specify that the materials would be imported by us, by Boustead Naval Shipyard (BNS). The fabrication has to be done locally, but if they were to supervise the fixing of the equipment inside (system integration) – the equipment we, the end user, decide, then we appoint 600 over vendors to come up with their specifications according to our needs. Maybe for one piece of equipment, we give the vendors 10 or 20 different tenders, we choose the right price and duration of delivery, then we integrate the system. So with that kind of system integration, we also get transfer of technology and knowledge.

Even on the IPR, Turkey is sincere. We have previously produced first generation petrol vessels (PVs) with BNS. Now we are talking about second generation PVs – which is literally combatant ships, meaning warships.


pisang said...

excellent interview

Anonymous said...

Interesting, I looked up 'Milgem' in Wikipedia and very surprised to find that the Turkish Naval Industry many many years ago were where we are today, trying To be free and become independent of the established Western Shipbuilders. They are now very advanced and I hope, with their help, Malaysia will emulate them.

Concerned Malaysian said...

I searched for 'Milgem' in Wikipedia and surprised to note that The Turkish Naval Industry, many many years ago were in the same predicament as Malaysia is today, trying to be independent and free of western shipyards and their control of all procurements and depriving local companies to participate. The Turkish Naval Industry is now very successful. I hope, this time with their help, The Malaysian Naval Industry will be as successful with a very short learning curve.

Anonymous said...

Excellent interview, and after reading Wikipedia, it looks like Malaysia is going in the right direction.
How long will it take to complete six ships? 10 to 12 years maybe. Malaysia must take the next big step and go ahead with the thinking of our YB Minister, or 2020 will pass by.
Otherwise we will never be called a fully developed nation by 2020 if our Naval Industry is not efficent and still is dependent on outside purchases.