Monday, 12 July 2021

Defense Maritime Industry In Malaysia : just how bad is the situation ?

Defence Industry

In dialogue and survey session by KPMG involving more than 20 MIDES and VDP companies in February 2021, the most number of complaints submitted was the dire state of the ecosystem. This is as a result of the postponement of the LCS Project and nearly 3 -year -old debts that have not yet paid by BNS. Many of the vendors are in a danger zone due to pressure to clear outstanding payments from suppliers, banks, and government authorities.

MASTRA calls upon the Ministry of Defence Malaysia and the ministry of Entrepreneurs and Cooperatives Development to look into the plight of the entrepreneurs, vendors, and SME's affected by the alleged non-payment. While the government’s efforts in reviving the LCS project are commendable the sustainability of the SME’s must be included in the equation. MASTRA proposes that direct payment to the SMEs be made a precondition of the revival plan.

STRIDE ought to be  under Markas BERSAMA , looking after the interest of all services of MAF , with representative from APMM and Marine Police. Restructure and Reassign STRIDE  for a wider scope of responsibility and accountability. Perhaps jointly with BIP . It must be properly organised with separate  Divisions taking care of Aeronotics, Marine and Automotive. include a 'Proactive' Division for Defence Industry . 

Participations headed by Veteran Senior Officer from Engineering Branch of the  TD, TLDM or TUDM, with council members representing the industry in  Automotive, Marine and Aeronautical Services. 

According to internal sources, STRIDE has no fund to do R&D, past develop project management and events led to loss of confidence in STRIDE's capability in managing innovations , hence sceptics to provide funding.

STRIDE should not continue as the old Defence Research Centre (PSTP) - more for fuel oil and material test labs!

 

Maritime Industry

MiGHT ought to Review and Audit their Maritime Strategy for 2020 that was published in 2011. They should identify  progress and more importantly shortcomings of the strategy up to this date and propose viable solution through Direct Interaction with in-country marine  technology practioners , and ONLY move forward from there  with  more practical and achievable steps . There were too much Way Forward ! yet if still sluggish to 'MOVE FORWARD' ,  it will not take our National Marine Technology Competencies and Sustainability to ANYWHERE ! So much were left out or ignored, at least over the last decade!

MASTRA suggest there a must change the KPI mentality to PDCA mentality in these agencies, besides Improve Governance. Their role is also governance , Tighten requirements for made in Malaysia and Malaysian products. This must Reflect in tender specification, Encourage integration and systems production.

Maintenance contracts should be given to 100% locally owned companies to promote and strengthen self-reliance. Clean up licensing and registrations. Clean up GLCs. Close the non-strategic collaboration. 

At a time when our ecosystem in bad shape we need to do the needful.

 If OEM still required, they must go through local 'technologically related and competent' companies.

We are aware of the problems exist, so how do we counter this or manoeuvre ourselves in this ecosystem ?

For more almost 15 years since our involvement in the industry in AMIM in 2006, we keep seeing plans after plans being launched by VVIP and yet our industry remains almost as 40 years ago. All these seminar, conference and workshop nicely done and presented documents are just for KPI or show only.

Perhaps the Ministry taking care of Technology. Development and Sustenance , such as MOSTI, and Ministry responsible for survival and progress of SMEs , perhaps MITI, are not fully aware, or indifferent,  on the plight of  Malaysian Marine  Industry ?


from defence industry brain storming group


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