M'SIA TO PROPOSE ASEAN DEFENCE INDUSTRY COUNCIL

KUALA LUMPUR, July 7 (Bernama) -- Malaysia will propose the setting up of an
Asean Defence Industry Council at the Asean Defence Ministers' Meeting in
November this year, Defence Minister Dr Ahmad Zahid Hamidi said.

He said that he had already conveyed the matter to his Asean counterparts
and would inform them officially during his visit to Asean countries soon.

Speaking to reporters after chairing the Malaysian Defence Industry Council
meeting here Tuesday, Ahmad Zahid said Asean countries would stand to benefit
from the council as it would provide an avenue for them to enhance cooperation
as well as expand the market for defence products of member countries.

He said Malaysia would also benefit from the proposal as it would not only
make Malaysia a user, but also a producer of defence equipment.

"For instance, if there are member countries producing better products, we
can use them together. We can also form partnerships with the member countries
concerned to produce the parts," he said.

Meanwhile, Ahmad Zahid said the government would utilise the ministry's
unused lands for the purpose of developing the defence industry where companies
producing defence equipment would operate in one area.

"In view of its status as an industrial area, the companies operating there
will be fully supported by the ministry's defence industry division," he said.

He said the move was to show that the ministry was serious in developing the
country's defence industry as well as to prevent unhealthy competition among
them.

He also said that the ministry had set five years to enhance the country's
defence industry.

Ahmad Zahid said the ministry would also coordinate its procurement policies
with other security agencies with the cooperation of the Finance Ministry.

"This is to ensure coordination in terms of procurement policies among
agencies such as the Royal Malaysia Police, Customs Department and the Malaysian
Maritime Enforcement Agency," he said.

On the meeting Tuesday, he said, they discussed issues such as incentives
for research and development programmes involving the defence industry.

The ministry had also targeted to increase the local content of defence
products to 30 percent in the 10th Malaysia Plan from 25 percent currently.
-- BERNAMA