Meet Malaysia's AI-powered drone makers

By Nur Zarina Othman - April 15, 2019 @ 12:14pm

With AI and self-charging capabilities and customisable to boot, the newly launched Venus drone is receiving notable attention, writes Nur Zarina Othman

AS unmanned aerial vehicle technology improves, more and more recreational drones are making their way into the market. Drones are popular because of their photography capability, making aerial and a bird’s eye view images possible.

Making its debut at the Langkawi International Maritime and Aerospace Exhibition (Lima) in 2017, Venus 1.0 (Venus) is a fully autonomous drone with a 24/7 flight and self-charging battery capability.

It was invented by four young men with a passion for aviation and aerospace technology. The drone was on “stealth” mode for two years prior to its debut but now FourFang, the company which developed it, is ready to take on the world.

FourFang Malaysia chief executive officer Dr Lee Shian said that for two years, the team’s only aim was to create a prototype for its first public appearance in Langkawi.

“We developed the concept and built the prototype in two years but at the time Venus debuted at Lima 2017, we were still not ready with the complete concept.

Continues Lee, “It took us another two years to perfect the algorithm for Venus and finally launch it for the consumer market this year.”

SELF-MAINTENANCE
The Venus 1.0 has the capability to maintain itself. The battery pack can last, on average, for a half-hour flight each time, but FourFang promises a 24/7 flight capability.

“The key is in its docking station,” explains Alfred Koh, co-founder and chief operations officer of FourFang.

He says Venus is not just a drone. Venus 1.0 consists of one unit of drone and its docking station. The docking station charges eight battery packs simultaneously.

“The station has eight charging docks and comes with voltage detector. Venus will return to the docking station to recharge automatically.

ALL-WEATHER DRONE
All FourFang co-founders are in a league of their own and the team’s main designer, Eric Ta Yet, has made Venus not only sturdy but also a drone that can withstand the weather. Designed to be weather-proof, the drone has survived various testing.

It has also undergone electrical tests. “I am in charge of all mechanical functions of Venus and its docking platform, making sure all work perfectly,” says Ta, a Purdue University graduate.

Being weatherproof is not the only asset. Venus can also reach amazing altitudes.

Venus at its docking station.

“Venus can go up to three kilometres high and the battery is also strong enough.”

Ta adds that being an intelligent drone, it can sense extreme weather and choose to return to its docking station, which is also waterproof.

This, Ta says, is also part of its safety precaution measures because Venus is not a palm-sized drone.

In extremely rough weather, it can pose a danger to others if it crashes.

DATA TRANSFER
During a thunderstorm, for instance, Venus will be in resting mode but it never rests.

At this time, it will backup all data to cloud storage.

The postgraduate Aerospace, Aeronautical and Astronautical Engineering holder from Nanyang Technological University says Venus can provide real-time data insights on the location of items.

Since it can fly 24/7 without assistance, it is not only efficient at ports for tracking containers. It also offers lean and on-time industrial operations.

“Tracking and tracing missing or wrongly parked containers can be solved with Venus.

“It is programmed to collect details and update the database where it helps not only in identifying but also solving problems for clients,” says Lee.

EXTENDED POWER
The FourFang team took two years from the conceptual design phase to produce the battery pack.

“We referred a lot to Tesla’s design when developing the battery packs,” says Lee.

Maximising the power of a lithium-on battery of 18650 format as used by Tesla, Lee and his team managed to generate enough power to fly Venus.

“We can get a lot of energy from the battery cells. Although it is a common battery cell in laptops, the battery we developed is unique to Venus. We place the batteries together in a series and parallel to maximise usage and meet the power requirement of the motor,” says Lee.

Ta adds that the only way to make the whole solution work is by making their own battery. “If we don’t create our own battery pack, it will be impossible to fit the docking station.

“We also have thermal management of the lithium-ion battery packs, so it is better to create with everything in mind rather than build something and work around it,” explains Lee.

AI AND CLOUD
FourFang has 15 engineers — mechanical, electronic and electrical as well as mechatronics — making and developing not only Venus but also FourFang’s other product line-up, such as Veto (vertical take-off and landing fixed wing), Terra (hydergen fuel powered drone) and a quad-propeller semi pro camera drone, all running on their own Artificial Intelligence system.

What makes Venus different from the rest of the other drones for commercial usage is the AI capability.

“We only use ‘parts’ that we developed ourselves and one of them is the AI component.

“No client has an identical system because we will develop algorithms based on specific requirements they (the customers) need,” explains chief digital officer Dr Lee Hsu Chew.

He is the person behind the complicated brain of Venus. Capable of identifying multiple entries at once in a single frame, Venus offers leading technology for the commercial-consumer market.

“We handle big data because with it, more AI training can happen. Depending on what the clients want — facial recognition, tracing or (and) location detection — all can be done with the algorithm change,” says Lee, adding that the technology is not limited to AI but machine and deep learning too.

MANAGING THREATS AND SERVICES
All connected technology is at risk of cybersecurity threats. As an automated, fully-automated drone powered by AI, Venus is exposed to such threats.

As part of the safety mechanism for Venus, FourFang to apply a cloud-based database system for the same reason most conglomerates such as AliBaba use it.

“Venus’ database is stored on a cloud based system and since it is not operating on remote control frequency, we make it safe from hijacking intent too,” says Lee.

Buying a drone can be expensive, let alone one with technology capabilities such as Venus.

“Venus is a custom-made product developed based on the industry it will be servicing. We make the drone according to requirements and the baseline cost for developing it is set at RM50,000 per unit.

“It can go up to millions of ringgit depending on requirements and many are not willing to purchase, manage and maintain such high-tech devices on their own. More clients are asking to pay monthly fees for Venus’ services, but the database is solely owned by the client,” adds Lee.

With the drone industry getting bigger, drones for commercial use are expected to flourish. And this is where FourFang intends to leave its mark in the industry — in cybersecurity, big data, AI and hardware skills.

Rebranding Lima to promote global peace

By Dzulkifli Abdul Razak

April 12, 2019 @ 11:00pm

Prime Minister Tun Dr Mahathir Mohamad must have felt a sense of a deja vu when he opened the 15th edition of the Langkawi International Maritime and Aerospace Exhibition (Lima) last month.

He launched the first edition 28 years ago in 1991, and now it is one of the leading maritime and aerospace exhibitions in the Asia Pacific region. Then it saw slightly over 100 exhibiting companies with the aim of making Langkawi the venue for light and experimental aircraft to fly unhampered by heavy traffic. Lima has since taken a life of its own. The value of deals signed at the recent Lima was over RM4 billion, according to official sources. It is an impressive success. ‎Why so?

One reason is that today Lima accommodated 406 companies (206 local and 200 foreign). Another, it manages mostly deep-pocketed defence-related companies, although there were also some civilian industries. This can give rise to controversies as voiced out by Dr Mahathir who noted that Lima is beginning to be a show that “glorifies big fighters”. He appeared disconcerted when he asked: “What are the fighter planes for? For killing people. What are the bomber planes for? For killing people. What are rockets for? For killing people. We are spending so much on research on how to kill people, which does not speak very well of the level of civilisation we have achieved,” he said at the Perdana Leadership Foundation CEO Forum 2019 post-Lima.

This is despite the many who considered the latest Lima the best ever staged. At a press conference in Langkawi, Dr Mahathir was quoted as saying it was “a record for Lima”. Admittedly, Lima has helped Malaysia attract investments and improve collaboration with the defence and aviation industries which the country hopes to further expand. Some associated this to the status of a developed country that Malaysia aspires to be by 2020, but has since been deferred to 2025. So, in the next five years where is Lima heading beginning with the next edition in 2021?

According to the defence minister, it would see a bigger show with more products. For example, Lima 2021 is expected to introduce aircraft technology as a new sector. It is meant for “global players in this area” to participate and showcase their products and services. Will there be more firepower “to glorify” and more deadly products “for killing (more) people”?

Inevitably, these are some of the pertinent questions being floated since Malaysia too, under the initiative of Dr Mahathir, is an advocate of a global movement to “criminalise war” with widespread support all round, especially given the present geopolitical uncertainties. To have Lima promoting just the opposite seems schizophrenic to say the least. It makes a mockery of a country that has been vocal over issues of global peace and justice.

With the Christchurch shootings occurring on the eve of Lima, it zoomed home the need to reposition Lima’s raison d’etre. The government must be more sensitive in framing its position against the “military-industrial complex” as warned by celebrated war veteran and army general, United States President Dwight D. Eisenhower in his farewell address in 1961. Taken to its logical conclusion, Lima may be heading that way if it continues to feed into this “killer complex” that wants to see many more arms invented and promoted as part of the business-as-usual agenda. At its worst, it is directed at the ready market of the developing countries and taking advantage of the socio-political vulnerabilities surrounding them.

There will be no end if the defence industry drives many sophisticated technology lending spin-offs (think robotics). Hence, as we talk about autonomous technology like public vehicles, there are already autonomous devices of all kinds that could unleash untold firepower from‎ faraway places aimed at specific targets with total precision, that is, precision to kill in unprecedented ways like robotic foot soldiers (imagine “Terminators”) acting in the same way.

It is unfortunate that no one has called for a rethinking of the raison d’etre of Lima-like events. In other words, how to turn Lima into a “peace-oriented” show, showcasing technologies that promote and save lives. Perhaps, renaming it as Langkawi International Philantrophy and Peace Solutions — it can display solutions on what is available to affect a sustainable future. There are many, including autonomous ones, that have been designed to improve, rather than kill, the millions deprived of the most basic support systems.

This will definitely make a difference and capture the imagination of global donors and philanthropists keen to make accessible preferred solutions (by extending funds) and move away from the military-industrial complex scenario. Short of this, Lima would lose its raison d’etre and be regarded as a promoter of the military-industrial complex.

Space technology for next Lima?

By Ayisy Yusof - March 31, 2019 @ 10:18am

LANGKAWI: Malaysia has cemented its position as a globally recognised maritime and aerospace destination, thanks to the Langkawi International Maritime and Aerospace (Lima) exhibition 2019.

The biennial event gained good traction from exhibitors and visitors globally, boosted by the presence of Tun Dr Mahathir Mohamad who opened the exhibition on March 26.

Having initiated Lima in 1991, the prime minister witnessed the 15th edition, fully confident it would remain a relevant platform to attract global players.

On the second day, Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah graced Lima 2019, toured the exhibition area and watched the airshow from the viewing deck of the Mahsuri International Exhibition Centre (MIEC).

Sultan of Selangor Sultan Sharafuddin Idris Shah, Sabah Yang di-Pertua Negeri Tun Juhar Mahiruddin, Sarawak Yang di-Pertua Negeri Tun Abdul Taib Mahmud and Melaka Yang di-Pertua Negeri Tun Dr Mohd Khalil Yaakob also visited the show.

Co-organised by the defence and transport ministries and EN Projects (M) Sdn Bhd, Lima 2019 was an important event for Malaysia to highlight its involvement in the development of the local and regional maritime, aerospace, defence, security and commercial industries.

It comprised 60 per cent of defence and 40 per cent of commercial content, and was supported by the International Trade and Industry Ministry through the National Aerospace Industry Coordinating Office, the Malaysian External Trade Development Corp (Matrade) and the Malaysian Investment Development Authority (Mida).

Defence Minister Mohamad Sabu said Lima allowed the government to offer a distinct platform for industries to thrive on seminars, business meetings and talks to promote business engagements, while highlighting industry development and trade facilitation.

“We believe that Lima is on the right track to attract more quality investments and develop local supply chains. The outcome will be useful for us to expand our network and prioritise and strategise efforts to further strengthen the industry.”

Mohamad said there were plans to make Lima bigger in 2021 and to include new sectors.

Tan Sri Mohd Anwar Mohd Nor

EN Projects chairman Admiral (Rtd) Tan Sri Mohd Anwar Mohd Nor said Lima 2019 had taken up over 110,000 sq m of the main exhibition area at MIEC.

“However, we suggest that the event be expanded for Lima 2021. We need to have another hall to attract more exhibitors, making room for a potential space sector.”

With the establishment of Lima, Malaysia was able to master advanced technology and is now capable of producing defence products for export, something Dr Mahathir himself acknowledges.

Anwar said Lima could be enhanced to showcase space technology.

“Generally, I feel Lima has grown by leaps and bounds. (We) should look into having modern, new inventions in space technology. We are optimistic that we can bring in this technology for the next show.”

Lima 2019 saw the participation of 206 local and 200 foreign companies from 32 countries, including Turkey, Russia, the United Kingdom, the United States and China. It also had record numbers over the three trade days with 42,030 visitors, of whom 17,226 were foreigners.

The exhibition hosted more than 410 defence and commercial delegations, 105 aircraft, 104 warships and maritime assets, and more than 600 journalists from around the world.

Event partners included Telekom Malaysia, Petronas, Affin Bank and Oris which were supportive throughout the show, and the two public days saw 237,000 people thronging the exhibition.

“Lima has been a brand since 1991 and that is the beauty about Lima in Langkawi, as a renowned brand for an exhibition,” said Anwar.

Lima 2019 also featured 15 high-impact conferences and activities in support of the exhibition.

Among the highlights were the Chiefs of Navy Roundtable Talks, the Asean Aviation Summit 2019, the Air Chiefs’ Conference and the National Maritime Conference 2019.

Matrade’s trade missions served as the main platform to promote Malaysian suppliers to global players, while Mida investment programmes continued attracting more aerospace investments to Malaysia.

The government signed RM3.67 billion worth of contracts and RM500 million business-to-business deals.

Anwar said Dr Mahathir was a visionary leader and his being Langkawi member of parliament and prime minister had attracted a lot of exhibitors this year.

Among the top defence and commercial companies are Airbus, ASELSAN, BAE Systems, Boeing, Boustead Heavy Industries Bhd, China Electronics Technology Important and Export Corp, Composites Technology Research Malaysia, Leonardo, Kongsberg and Malaysia Airports Holdings Bhd.

Malaysia, Laos sign MOU on defence cooperation

KUALA LUMPUR: Malaysia and Laos today signed a memorandum of understanding on bilateral defence cooperation.

Malaysian Defence Minister Mohamad Sabu and Laos Minister of National Defence Gen Chansamone Chanyalath, who is on a three-day visit to Malaysia beginning yesterday, signed the MoU at Wisma Perwira here.

In a joint press release, the two ministers expressed optimism that the MoU would increase interaction and initiate deeper bilateral defence cooperation that would serve the common interests of the two countries.

They said defence cooperation between the two countries was gradually but assuredly progressing, underpinned by the two nations’ close working relationship as members of the Asean Defence Ministers’ Meeting (ADMM).

They said their excellent interaction at the ADMM level had ensured a solid platform for the two countries to contribute towards the continued peace, stability and security in the Southeast Asian region.

Chansamone is on his first official visit to Malaysia since assuming office in April 2016.

He visited the National Defence University of Malaysia and BHIC Aeroservices Sdn Bhd, a subsidiary of Boustead Heavy Industries Corporation Bhd. – Bernama

By Bernama - March 22, 2019

Boustead Heavy positive it can turn around financial fortunes this year

PETALING JAYA: Boustead Heavy Industries Corp Bhd (BHIC) is positive that it can turn around its financial fortunes in 2019, noting it had an order book of RM4.3 billion as at March 31.

Its deputy executive chairman and managing director Tan Sri Ahmad Ramli Mohd Nor said the group is confident of seeing a reversal in performance from the RM108.3 million net loss, and a lower revenue of RM169.1 million,  for the year ended Dec 31, 2018 (FY18).  “Last year, in the first three quarters we made a profit. In the last quarter, we had to conform to the accounting standard, and of course, the accounting standard dictates that whatever we spend we have to recognise.

“There was a lot of spending on the variation orders [for a shipbuilding project], so we had to take that into account. Right now, we are negotiating with the authorities to reduce additional variation costs,” he told reporters after the group’s annual general meeting yesterday. Ahmad Ramli said BHIC is looking to penetrate the regional market, as he believes the group is cost-competitive regionally, and that it cannot entirely depend on the government for work orders.

BHIC chief operating officer Ee Teck Chee said the group has earnings visibility up to 2023 based on its order book of RM4.3 billion as at March 31. He said 60% of the order book comprises contracts to build littoral combat ships (LCS) and littoral mission ships (LMS), and the balance 40% are maintenance, repair and overhaul (MRO) orders. Asked how the group will leverage on the Royal Malaysian Navy’s (RMN) 15-to-five transformation plan given the government’s concerns over high debts that it has, Ee pointed out the group is already manufacturing the LCS and LMS. “We have the design for the NGPV (new generation patrol vessel), and are building four LMS. We hope to continue with the 15-to-five programme,” he said.

He added that the group had received a letter of intent from the government for the integrated logistics support for the government’s LCS project, expected to be finalised in the next few months. “This is a good indication that for this year, we should see a better performance,” said Ee, adding that the group is poised to take over more jobs from the government. “We are poised to take more jobs from the government, including MRO, because existing ships need to be maintained. If the government wants to build new ships, [then] we have the expertise,” he said.

The 15-to-five plan was launched by the RMN to streamline the naval vessel categories from 15 to five. These five are submarines, LCS, LMS, NGPV and multirole support ships.

THE EDGE

24 April 2019

News Malaysia, Singapore get down to maritime border negotiations

 
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PUTRAJAYA, April 9 — After decades of ambiguity, Malaysia and Singapore today announced the start of negotiations to delimit their maritime borders.

Prime Minister Tun Dr Mahathir Mohamad said a new committee will be formed within a month, following Malaysia’s mutual agreement with Singapore to reverse their port limits to the 2018 lines yesterday.

“As the saying goes, good fences make good neighbours,” Dr Mahathir said in a joint news conference with Singapore Prime Minister Lee Hsien Loong after their 9th bilateral Leaders’ Retreat here.

“Ultimately, Malaysia believes it is important to delimit all outstanding maritime boundaries between Malaysia and Singapore, and not only to delimit the area surrounding the port limits. It should be for the whole boundary,” Dr Mahathir added.

In a separate joint statement, the two leaders said the committee will be chaired by the secretaries-general of both countries’ foreign ministries.

Both also said they looked forward to the 8th Meeting of the Malaysia-Singapore Joint Technical Committee on the Implementation of the International Court of Justice Judgment on Pedra Branca, Middle Rocks and South Ledge to resolve outstanding bilateral maritime boundary delimitation issues in the area.

They also welcomed the determination of the actual location of the points of the international boundary pursuant to the Agreement between the Government of Malaysia and the Government of the Republic of Singapore to Delimit Precisely the Territorial Waters Boundary in Accordance with the Straits Settlements and Johore Territorial Waters Agreement 1927 signed on August 7, 1995.

The return to the 2018 limits yesterday means both countries agree to temporarily suspend all commercial activities in the area including fishing, refrain from anchoring government vessels in the area, and agree to operate in the area in accordance with international law, including the United Nations Convention on the Law of the Sea.

The dispute between Malaysia and Singapore over the limits of Johor Baru’s port limits off Tanjung Piai and the port limits off Tuas has been a long-standing issue dating as far back as 1979.

Matters came to a head on October 25 last year when the Attorney General’s Chambers published a document through the Federal Government Gazette that displayed Tanjung Piai’s limits with a significant eastward extension.

In response on December 6, Singapore extended Tuas’ limits. Its transport minister said the island republic will not hesitate to take “firm action” to protect its territory and sovereignty.

Both countries also deployed naval vessels to the disputed waters, with Singapore sending at least one armed littoral mission vessel to stake its claim.

Amrin Bin Awaluddin The New Managing Director Boustead Holdings

KUALA LUMPUR (April 5): Boustead Holdings Bhd has appointed former Sime Darby Property Bhd CEO Datuk Seri Amrin Awaluddin (pictured) as its new managing director, confirming a report in The Edge Financial Daily yesterday. 

In a statement, Boustead said Amrin has had a notable career with 30 years of experience in the corporate arena, playing a pivotal role in driving the success of Malaysian companies including Renong Bhd, Malaysian Resources Corporation Bhd, Sistem Televisyen Malaysia Bhd, Media Prima Bhd and most recently, Sime Darby Property Bhd. 

"We are pleased to welcome Datuk Sri Amrin as our new managing director. We are confident that his experience and proven track record will help steer the group forward. Particularly given the increasingly competitive landscape, his vast expertise and sharp business acumen certainly augurs well for the development of the group," said Boustead chairman Gen Tan Sri Datuk Seri Panglima Mohd Ghazali Che Mat. 

Sime Darby Property announced yesterday that Amrin will be stepping down as its managing director on May 3, after serving the company in the position from September 2017. 

Amrin, who served as Media Prima Bhd managing director from 2009 to 2017, will be filling up the top post at Boustead that has been left vacant for three months, following the resignation of Tan Sri Che Lodin Wok Kamaruddin.

Amrin came on board Sime Darby Property after the demerger of Sime Darby Bhd in 2017, which saw the listing of the group's property and plantation divisions.

Currently, he holds directorship in Taliworks Corp Bhd, as well as CIMB Bank Bhd. 

Amrin graduated with a Bachelor of Business Administration (Honours) from the Acadia University, Nova Scotia, Canada, and then with a Master in Business Administration (Finance) from the University of Hull, United Kingdom. He also is a member of the Chartered Institute of Management Accounts and the Malaysian Institute of Accountants. — theedgemarkets.com

LIMA 2019 : Business Deal

Contracts Day, LIMA 2019

LANGKAWI: Contracts Day, LIMA 2019. Seven contracts, ten letter of awards (LOA) and eight letter of intents (LOI) worth RM3.655 billion were signed at LIMA 2019.

As reported earlier, there was no contract for the MICA SAM.

Even though the total amount of the deals, looks big, it is actually misleading as most of them had been announced before like the Starstreak, NSM, submarine ISS and the 105LG gun from Nexter. Its the normal, for a lack of a better word, the LIMA shuffle.

Others include spares and maintenance support of various ships, aircraft and equipment of the RMN and RMAF. The only thing that stood out was an LOA to a Serbian company, Glotec Ltd Serbia, for the MRO of the MB-339CM Viper 632-43 turbo jet engines.The announcement did not say how many engines will be overhauled though based on the contract amount of RM40.8 million, it may well be the whole complement of Vipers still in service. It is also unclear where the work will take place as the company website says it was established in 1989 in Singapore, Serbia and Montenegro.

I have no idea how many of the Viper engines are in service as they were taken out of the A’s for the MB-339CMs.The Viper engines were overhauled by AVIO of Italy before they were installed, inexplicably, on the CM.

Pulatibang 3 MB-339CM

Some 10 years after the CM’s service, the flying rates, I am told is dismal due to the difficulties in getting parts for the engines. We originally got eight CM but one crashed in 2016, leaving only seven air frames available. Leonardo, the Italian defence group which Aermacchi now belongs to, has a standing offer for RMAF to sell back the 339CM for the M-346 trainer. It has now been upgraded to the M-346FA, its entry for the LCA project.

— Malaysian Defence

by Marhalim Abas

Moving forward: Defence industry as an economic catalyst

By Liew Chin Tong

April 1, 2019 @ 12:15am

MOST long-time watchers of the Langkawi International Maritime and Aerospace Exhibition 2019 agreed that this is the best show ever since its inception in 1991. But New Malaysia needs to aim higher. As a nation, we need to find a formula to develop a genuine and strong Malaysian defence industry, which will serve as a catalyst for the economy.

This year’s Lima has a special feel in part because Langkawi is where Prime Minister Tun Dr Mahathir Mohamad made his most dramatic political comeback at such an advanced age.

When Dr Mahathir bucked the Mahsuri curse to develop Langkawi, no one would have expected that he would seek the residents’ help one day, and with their support, lead the nation on a comeback act to rise again.

Many don’t recall that Dr Mahathir was also a defence minister between 1981 and 1986 with some indepth understanding of what needs to be done to defend national interests.

In hindsight, to organise an international airshow with the aim of building a domestic aerospace and defence industry in 1991 when Langkawi didn’t even have an international airport was indeed visionary.

WHY DEFENCE INDUSTRY

Having a strong defence industry means a nation would have to organise research and development across the board very effectively and the technological gains in defence industry would spill over to other civilian sectors. Internet, GPS and SIRI were all originated, tested and proven in defence before being adopted elsewhere.

A strong defence industry also means that in time of war or crisis, a nation has the engineering capabilities across the board to fend for itself.

Of course, at the end of all these, a strong industry’s ultimate aim is to create decent jobs for Malaysians. Malaysia’s defence industry has come very far since the first Lima. But, I would contend, not far enough. We can do more than what we have done thus far if we organise ourselves better and unleash our people’s full potential.

In my capacity as deputy defence minister, I visited two- thirds of the booths at the Mahsuri International Exhibition Centre and came away with two observations.

FIRST, Malaysia lacks exportable brands and products. The exhibition feels more like a show for foreign big brands selling us something that we may or may not need.

South Korea, Turkey, Indonesia and Singapore are examples of countries which had very little defence industry 30 years ago, but now boast of an impressive list of products to export just over a generation’s time — something that Dr Mahathir clearly foresaw with his Lima vision, though the nation did not achieve as hoped.

SECOND, more than half of the exhibition is about a computer system, which is a great entry point for Malaysia to make an impact in the quickest way.

We don’t need to build a full plane or even a flying car to arrive at our goal to have more Malaysian innovations and products of world’s quality.

Some deeper integrations between the defence industry and the Kuala Lumpur-Cyberjaya ICT industry as well as Penang-Kulim electronics and electrical industry are the place to start.

COMMISSION AGENT OR 
PRODUCER

One perennial question concerning the defence industry is whether Malaysia is just a mere trader or we can be a producer of exportable goods. To put it crudely, most of what we have in the industry are “commission agents” or “postmen” who sell arms as a local agent to the Defence Ministry and the Malaysian armed forces on behalf of foreign original manufacturers.

Some just have a small office in town with a skeleton staff, but make huge bucks out of a relationship with one of the former defence ministers or some generals. Razak Baginda (Perimaker) in the Scorpene deal is an extreme case in point.

Industry players complain that they can’t invest in R&D as well as productive capacity if the government procures on whims and fancies of ministers or generals.

On the other hand, generals and the final users — our soldiers — may dislike some local products because they don’t live up to the required standards.

A lousy product can mean loss of many lives in wars or operations.

PROCUREMENT OR INDUSTRIAL POLICY

This egg-and-chicken question has to be solved before we can move further. The new government needs to put in place stronger checks and balances, policy clarity, as well as consistency in our defence procurement, which I hope the Defence White Paper process can play a role.

For items that we are not capable of producing now, we should procure in the cleanest possible ways. But if there is any opportunity to nurture local producers, we should seize such chances.

When I visited Australia last year, I am told by defence officials that for the longest time the Department of Defence procures from everywhere in the world and with an arms-length attitude to ensure no collusion or corruption. But there has been a major shift in thinking in the past few years to develop a strong domestic defence industry to provide jobs and technological depth for the Australian economy. Australia’s current government has a Defence Minister and a Defence Industry Minister, both cabinet ranked.

If we agreed that some form of industrial policy is needed for the defence industry, then we will have to get it right. Industrial policy with a carrot and stick is more likely to succeed than just carrot only as the other name of this is “corporate welfare” or, worse still, cronyism. The defence industry must not just aim to sell to the Malaysian government but to aim to be an exporter. So there must be ways to measure successes and also impose penalty for failures like letting go some poor performers.

Admittedly, the time needed to nurture a genuine defence industry is probably longer than other industries. But if it is done right, we will see some clear results in a decade or so which is why I told the audience at a dialogue at Lima that many of us in this government is thinking not just about the next 20 days of firefighting which we will have to do as politicians, but we are also thinking about the next 20 years.

For industrial policy to succeed, the government will have to organise R&D across universities and research institutes better. Currently, most of them work in silos. R&D doesn’t work with the users close enough. And, the security and defence users (the three services in the armed forces, police and other enforcement agencies) must not work in silos to procure items that each prefer but can’t operate in sync and can’t help the overall industrial policy.

Funding will be an important subject. If all is state-driven with no market signal at all, it may go to the other extreme. A mixture of state funding as angel investor will be helpful. It is in this context that when I visited the Lembaga Tabung Angkatan Tentera (LTAT) in January, I suggested to the new management to forget about becoming a housing developer, which the last management pursued, but to be a strategic investor in the defence industry.

During Lima, I had an interesting meeting with Dr Ajay Kumar, India’s Secretary of Defence Production (India’s defence ministry has four secretaries-general responsible for strategic matters, defence R&D, defence production, and veteran affairs). According to him, revolutions in information technology in recent years have brought many formerly purely civilian ICT companies into defence industries. At the same time, as technological revolution creates a level-playing field, start-ups are competing with big boys in the defence industry, which inevitably becomes more technological driven.

It is my fervent hope that Lima ’21 and the subsequent ones would be transformative with many more Malaysian innovations and products so that we are not just being asked to buy from foreign corporations but we have something great to offer to the world as well.

The writer is deputy defence minister.

LIMA2019 - Russia offers palm oil defence offset

Russia is committed to drastically increasing its purchase of palm oil from Malaysia, said Rostec State Corp international cooperation and regional policy director Viktor Kladov, after a meeting with Malaysia’s Prime Minister Tun Dr Mahathir Mohamad at the Langkawi International Maritime and Aerospace exhibition (Lima) 2019

LANGKAWI: Russia is committed to drastically increasing its purchase of palm oil from Malaysia, said its top defence procurement official.

The palm oil purchase will entail an offset deal leading to the Royal Malaysian Air Force (RMAF) disposing of its two squadrons of 18 decommissioned MiG-29N Fulcrum jets.

Russia is already assisting in refurbishing the ageing fleet of 18 Sukhoi Su-30MKM Flankers, via its local partner ATSC Corp, reportedly for RM2.2 billion — thus expanding its serviceability for another 15 years.

And it is now even looking at offering the RMAF the fourth-generation Su-35 or even its latest Su-57E (the equivalent of the United States’ F-22) if it wants to upgrade.

Rostec State Corp international cooperation and regional policy director Viktor Kladov told theNew Straits Times Russia was willing to buy Malaysian palm oil in substantial amounts to improve the bilateral trade balance, with the possibility of trade-offs for arms and defence procurement and transfer of technology and job spin-offs.

“We are aware of the palm oil ban for biofuels in Europe and Russia is ever-ready to help Malaysia by buying more palm oil. At present, 90 per cent of Russia’s palm oil is imported from Indonesia and we intend to change that (in Malaysia’s favour).

“I have personally spoken with Prime Minister Tun Dr Mahathir Mohamad on this matter at a private meeting with him yesterday, and applauded him for his great vision. This can lead to improved defence offset packages that can greatly benefit Malaysia,” he said in a special interview at the Langkawi International Maritime and Aerospace exhibition (Lima) 2019 at the Mahsuri International Exhibition Centre in Padang Matsirat.

Royal Malaysian Air Force Sukhoi Su-30MKM 

Europe is the largest buyer of Malaysian palm oil after India and now even China has reduced imports of the commodity.

Kladov was a prime mover in enhancing Russia-Malaysia defence relations during Dr Mahathir’s first 22-year tenure as prime minister.

It culminated with a several hundred million dollar offset deal, involving palm oil, with Malaysia initially procuring 18 MiG-29N Fulcrum air superiority fighters in 1995.

The MiG-29N — two of which crashed in 1998 and 2005, respectively — was decommissioned in 2017 owing to high maintenance costs of RM262 million a year.

Several countries, including Bangladesh and India, are keen to buy the MiG-29N.

Subsequently, in 2003, Malaysia purchased 18 Flankers from Russia’s Irkut Corp for US$900 million (RM3.67 billion), also involving palm oil purchase.

The offset deal led to the country’s first space programme with Malaysia’s first astronaut to the International Space Station in 2007.

Owing to budgetary constraints, the RMAF has deferred its multi-role combat aircraft (MRCA) programme to 2025.

Instead, it is looking at improving on its lead-in fighter jet fleet, which is made up of the Italian Aermacchi MB339.

“In fact, Russia’s Yak 130 is similarly designed after the Aermacchi and we are prepared to trade in RMAF’s ageing fleet,” said Kladov.

He added that he also had a discussion with RMAF chief General Tan Sri Affendi Buang who was keen on strengthening and improving the serviceability of its fighter jets.

“He is all for Russia to give strong technical and maintenance support for its existing Sukhoi fleet. Affendi is not in favour of procuring too many fighter jets as Malaysia is a small maritime nation,” said Kladov.

On another matter, Kladov said the Fire and Rescue Department and the Malaysian Maritime Enforcement Agency were interested in procuring up to eight units of Ansat, Mil Mi-8/17 and Kamov Ka-32A11DC from Russian Helicopters, a division of Rostec State Corp.

“These helicopter models, which can be traded in for the ol-der fleet of the agencies, are ideal for fire-fighting, emergency medical services, as well as search and rescue missions,” he said.