PUTRAJAYA: The government is leveraging on the Industrial Collaboration Programme (ICP) platform as one of its strategies to provide opportunities and a competitive edge for local industry players in the global supply chain and market.
Finance Minister Lim Guan Eng said the ICP had been an instrumental process in identifying gaps within the local industry, especially in their capabilities and capacities to meet the global standard requirements and elevating them to the next level.
"Today, we witness another instance of ICP implementation in Malaysia in relation to the contract of Bombardier-Hartasuma Consortium (BHC) to supply and refurbish trains for Prasarana Malaysia Bhd.
"It involves mid-life refurbishment (MLR) of two-car train sets to four-car train sets for the Kelana Jaya Line and 27 new train sets for Kelana Jaya Line (KLAV-27).
"The delivery of the first out of 27 new trains is expected to happen in the first quarter of next year and the delivery for all 27 new trains will be done in the next five years," he said after the signing of the first-tier ICP agreement between the government and BHC.
Also present were Hartasuma Sdn Bhd managing director Datuk Dr Abdul Rahman Abdul Halim, Prasarana Malaysia president Datuk Mohamed Hazlan Mohamed Hussain, Bombardier Transportation vice-president (head of South East Asia) Jayaram Naidu and Technology Depository Agency Bhd (TDA) chief executive officer Datuk Zailani Safari.
Lim said for the ICP for KLAV-27, which has a contract value of RM1.7 billion, BHC had committed to maximising the usage of local content at a minimum of 35 per cent, which is estimated at RM600 million.
"This approach is a catalyst for local industry players to be part of Bombardier's global strategic cooperation and contribute to the Malaysian economic and industrial growth. Also, hundreds of local jobs will be created over the next four years through this ICP implementation," he added.
For the ICP of MLR, which had a contract value of RM473 million, the minister said, the BHC had agreed to extend the existing local supplier database in rolling stock by using components and services offered by 14 local companies valued at RM100.7 million.
"These 14 local companies will be providing components and services at competitive pricing which will enable them to sustain and boost their business in the rail industry."