ASEAN AIMS TO BE MAJOR PRODUCER AND EXPORTER OF DEFENCE PRODUCTS

KUALA LUMPUR, Oct 6 (Bernama) -- Malaysia plans to set up the Asean Security
and Defence Industry Council (ASDIC) in an effort to make this region the
world's major producer and exporter of defence equipment and products in the
future.

Defence Minister Dr Ahmad Zahid Hamid said the proposal, to be tabled at the
Asean Defence Ministers Meeting in Bangkok next month, was expected to receive
positive response from the member countries.

"Asean countries, including Malaysia, have all this while only been dumping
grounds for defence products produced by European countries and America.

"In addition, we have to pay high prices for all these equipment and
products while the technology involved is already outdated," he said after
opening the Asia-Pacific Conference on Defence and Security Technology, here,
Tuesday.

He said the plan was not impossible to materialise as there was already
cooperation with producing companies in the West which would allow for the
transfer of technology and expertise to this region.

Ahmad Zahid said the time had come for the Asean region with a population of
500 million to produce defence equipment and products for their own use and to
export them globally.

"Much of the economy of Europe and America are generated by the defence
industry, while we and other countries in this region are the user countries.
Hence, it's time for us to produce our own defence products using the latest
technology and at more competitive prices."

He said local companies supplying imported defence equipment should not
merely be recipients of commission, but be brave enough to invest in the
development of defence products with internatinal market potential.

The ministry, he said, was offering a 40-hectare site in Sungkai, Perak to
interested local companies for the setting up of a research and development
(R&D) facility and manufacturing plants for defence products, along the concept
of the high-tech park.

"The proposal paper can be submitted to the ministry for perusal. We need to
be careful as we don't want a situation where those who get government land to
set up an industry to instead use the land as collateral to get a bank loan, but
the money is used for something else. In the end, the land is lost, creating
problems," he said.

The two-day conference, which ends Wednesday, is organised by the Defence
Ministry, Malaysian Armed Forces and Universiti Putra Malaysia.
-- BERNAMA