KUALA LUMPUR: The government will mandate a minimum of 30 per cent local content in all defence procurements and end original equipment manufacturer involvement in maintenance, repair and overhaul (MRO) work. Defence Minister Datuk Seri Mohamed Khaled Nordin said the move was part of a sweeping push to build a self-reliant national defence industry under the newly launched National Defence Industry Policy (DIPN). He said all MRO activities would be carried out by local companies, except during warranty periods, adding that contracts would be terminated if firms failed to innovate, increase local content levels or reduce costs. Among the key reforms outlined, aside from setting a minimum local content requirement of 30 per cent for each defence procurement, are revised terms on technology transfer. Alongside the launch of the DIPN, Khaled also introduced the Defence Industry Portal, which provides a platform for ICP applications, R&D grants and technology offerings related to the defence sector.
