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ICP

National rail industry players significantly benefitted through ICP

National rail industry players significantly benefitted through ICP

Kuala Lumpur, 15 Aug 2022 – In an effort to develop and facilitate the development of the local rail industry, Technology Depository Agency (TDA) is committed to strengthen the implementation of its Industrial Collaboration Program (ICP) across all the industry players. This is a response to the Ministry of Transport’s (MOT) aspiration towards the local rail industry, that is to achieve the target of local industry players’ capability to providing maintenance and restoration of rail assets and to increase the lifespan and operability of rail assets up to thirty to forty years which eventually will bring a great saving to the Government.

A significant increase in train passengers all over the world brings about the necessity of developing the rail industry. The Government via its effort in providing a better rail infrastructure in the country have allocated almost RM150 billion to fund the infrastructure and rail systems such as Rolling Stock, Signaling, Communication, Trackworks, Electrification and Automated Fares Collection.

In support to the Government’s committed initiative, TDA facilitated 52 packages of rail procurements which generated 327 ICP projects from 2012 till August 2022. One of the notable rail project under ICP programs is the establishment of the first OEM-Certified rolling stock assembly facility in Rasa Industrial Park in Rawang under the flagship of Klang Valley Mass Rapid Transport (KVMRT) project. ICP has further facilitated the increase of local content target to 50% from the initial 30%, thanks to various measures on localization, business partnership and others. ICP push for Malaysia Local Content (MLC) has entails not only the production of local content, but also the knowledge transfer on engineering design, assembly, works and testing support to the local recipients.

According to Dr. Sharoul Jambari, Chief Executive Officer of TDA, based on the impact assessment of 63 completed rail-based ICP projects, RM895.8 million of GDP was generated and provided 11,531 in high skill jobs. This is the proven impact of significant contribution of ICP to the nation’s economic growth.

The ICP which is a Government procurement policy aims to add value to procurements made by the government via development of local industry and technology. TDA, an agency under the purview of Ministry of Finance (MOF) is responsible to manage, administer, and monitor the ICP implementation as per the requirement stipulated in the ICP Management Framework.

In conjunction with Rail Technology Expo 2022 (RTX 2022), Minister of Transport, Datuk Seri Ir. Dr. Wee Ka Siong said, “The Government is working diligently by introducing various initiatives and incentives to ensure that the local industry and technology is capable of being the backbone to national rail transport development and reducing our local dependency to foreign expertise.”

“The Land Division, Ministry of Transport, together with NRCOE, now known as Malaysia Rail Development Corporation (MRDC) is planning to improvise the rail industry master plan holistically, where the procurement policy will be prioritizing capable and high-quality local rail industry players. This is a timely initiative because the development of rail projects in ASEAN is on the rise and we need to grab this golden opportunity to get into the ASEAN market,” he said during the launch of Rail Technology Expo 2022 (RTX2022) in KL Sentral.

In realizing this aspiration, MOT is committed to work with various ministries and agencies to help our local companies improving their expertise through multiple initiatives including lndustrial Collaboration Program (ICP) under Technology Depository Agency (TDA).

Meanwhile, RTX2022 that began on August 11 was concluded yesterday. The expo was held with the objectives of raising awareness on the development of current rail technology, promoting the capability and capacity of the local rail industry players, and to expand the business network between stakeholders.

55 exhibitors ranging from government agencies, local and international rail industry players, and institutes of higher learning participated in the exhibition. The expo was attended by more than 3000 visitors that comprised government officials, private sectors, academia and public.

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TECHNOLOGY DEPOSITORY AGENCY BERHAD (1134653-W)

 
 

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Categories
ICP

RM10 million worth of Value-Add generated through ICP​

RM10 million worth of Value-Add generated through ICP​

Port Dickson, 12 Sept 2022 – More than RM10 million worth of value-add generated through ICP following the procurement of two units of a 1000MW ultra supercritical coal fired power plant involving ICP Provider, Toshiba Energy Systems & Solution Corporation (TESSC). The project, which was awarded to JEP by the Government of Malaysia through the Energy Commission (EC) back in 2014 was required to comply with requirements outlined in the Treasury Circular on Policy and Guidelines on Offset Programs in Government Procurement (now known as the ICP Policy).

Technology Depository Agency (TDA), the agency mandated by the Ministry of Finance (MOF) to manage, administer and monitor the implementation of Industrial Collaboration Program (ICP) was appointed to manage and administer the execution of the ICP Program.

“The responsibility mandated by the Ministry of Finance to TDA requires us to ensure the implementation of ICP is in compliance with the requirements of the policy framework,” Dr. Sharoul Jambari, Chief Executive Officer of TDA said.

ICP Program on 3B Power Plant Project consisted of technology transfer from TESSC to JEP, TNB REMACO and TNB ILSAS, in an effort to develop local expertise through simulator training at Tuanku Muhriz Power Plant. TESSC was required to facilitate the supply of the simulator, transfer of technology and knowledge, and capacity building training to local universities and training institutes. Upon signing the agreement TESSC proposed three ICP Projects with value generated of more than RM10 million that comprised all the requirements.

Tuan Haji Jamal bin Yusof, Managing Director of JEP said, “This productive collaboration fostered through ICP implementation should be replicated and continued in the future to generate a competitive industrial development, in line with the ever-changing technology advancement.”

The first ICP Project involves the supply, development, testing, and commissioning of the training simulator. The commissioning of the training simulator brought RM8 millions of cost saving in return for the investment of simulator purchase to local power plants. With the ability to produce more accurate result prediction and providing cost saving in operations, the operation and maintenance cost are forecasted to be reduced between ten to fifteen percent, amounting to approximately RM500,000 until 2023. Furthermore, the participation in local manufacturers in sourcing the hardware and associated components has increased the local content worth of RM250,000.

The second ICP Project involves technology and knowledge transfer for the development of the training simulator. This project is mainly focusing on the development of training simulators to TNB REMACO and TNB ILSAS in order to provide opportunities for local engineers, technicians, and programmers to gain knowledge and hands-on experience in setting up the hardware integration, testing, programming, maintenance, and software upgrade. With all of the training provided, it will save RM1.6 million worth of cost saving to local companies in training expenses for several disciplines in development, operational and maintenance of the simulator. Not only that, it will also reduce our dependence to foreign experts and provide a potential revenue for local training programs.

The third ICP Project consisted of human capital development that was intended for local recipients to utilize the simulator to prepare them for the power plant industry human capital development. With the utilization of the simulator, it can also be leveraged by local institutes as one of the learning tools on coal fired power plant system operation and control systems. With this initiative in the pipeline, it can reduce approximately 57% training cost as compared to overseas training and shorten the learning process for each personnel by six months.

Deputy Secretary General (Management) Ministry of Finance (MOF), Datin Rashidah bt Mohd Sies in her officiating speech has said, “MOF supports the aspiration of ICP Policy and Guidelines implementation to ensure the added-value for every expenditure utilized through government procurement will be able to develop local industry, increase technical capabilities, and accelerate technology adoption and further reduce our dependence to foreign resources.”

“Aligning to the aspiration of Sustainable Development Goal, ICP can be leveraged in focusing on value-added initiatives to support the circular economy and encouraging the cooperation with industry players towards adoption of sustainable and responsible production approach,” she added.

The ICP Program on 3B Power Plant Project was introduced and started in 2014 and concluded its milestones in providing value add to the procurement of the ultra-supercritical coal fired power plant. The closing ceremony was officiated by the Deputy Secretary General (Management), Ministry of Finance, Datin Rashidah bt Mohd Sies and attended by representatives from TDA, JEP, TESSC, TNB REMACO, TNB ILSAS, Politeknik Port Dickson among others.

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TECHNOLOGY DEPOSITORY AGENCY BERHAD (1134653-W)

 
 

Level 17, Tower 6, Skypark @ Cyberjaya 47100 Cyberjaya
Selangor Darul Ehsan

Tel: +60 (3) 8322 4422
Fax: +60 (3) 8322 2626 
Email: enquiry@tda.my