By Ahmad Fuad Yahya

MALAYSIA SUGGESTS PRODUCING ASSAULT RIFLE WITH ASEAN PARTNERS

JAKARTA, May 20 (Bernama) -- Malaysia has suggested producing the assault
rifle Colt M4 Carbine with Indonesia and Thailand under the Asean Defence
Industry Collaboration programme.

Defence Minister Dr Ahmad Zahid Hamidi said Friday that Malaysia
made the proposal because a big company in the country had been given the
licence to produce the rifle with 85 per cent local components.

If Indonesia and Thailand agreed, a special purpose vehicle would be set up
as a company to facilitate the collaboration, he told reporters here.

The concept paper on collaboration in the defence industry prepared by
Malaysia was accepted by the Asean Defence Ministers meeting which ended
Thursday.

The Colt M4 Carbine is the assault rifle used by the American army.

The Malaysian arms company SME Ordnance Sdn Bhd signed an agreement with
Colt Defence LLC in 2007 to buy 14,000 Colt M4 carbines, all of which were
delivered in June 2008.

SME signed another contract with the company in February this year for the
supply of 116,000 carbines over seven years, the delivery pending the approval
of the US Congress.

After the transfer of technology, Malaysia would be allowed to sell locally
made carbines to Brunei, Indonesia, the Philippines, Thailand and other
countries using the Colt M4.

Ahmad Zahid said that agreement could be reached for Indonesia and
Thailand to produce certain components for the rifle to be assembled in
Malaysia.