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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