About ICP

What is Industrial Collaboration Program (ICP) ?

HISTORY OF ICP
HISTORY OF ICP

INDUSTRIAL COLLABORATION PROGRAM ACHIEVEMENTS

0

ICP Programs

0

ICP Projects

0

Sectors

0

Recipients

*Disclaimer: Data as of April 2024

OUR PARTNERS

Together empowering local industries and enhance economic power.

MOH

Ministry of Health

MRT CORP

Mass Rapid Transit

PRASARANA

Public Transportation System

KETSA

Kementerian tenaga dan sumber asli

SEDIA

Sabah Economic Development and Investment Authority

CAAM

Civil Aviation Authority Malaysia

MOSTI

Ministry of Science, Technology And Innovation

APMM

Agensi Penguatkuasaan Maritim Malaysia

TNBM5

TNB Manjung Five

MOT

Ministry of Transport

JBPM

Jabatan Bomba dan Penyelamat Malaysia

JPN

Jabatan Pendaftaran Negara

ICP Management Framework Process

Pre-Implementation

Implementation

Post-Implementation

ICP Required Documents

Procurement Proposal by the Agencies

IRD Development

Bidder proposal submission

ICP Proposal Evaluation

Assess OEMs business and identity

Identify potential beneficiaries capabilities

ICP Projects Negotiation

Procurement Proposal by the Agencies

IRD Development

Bidder Proposal Submission

ICP Agreement

Finalization of activities, deliverables, outcomes and timeline

ICP Monitoring

ICP activities monitoring to ensure deliverables performance

ICP Implementation Verification

Post Implementation Audit

ICP Program Completion

Relief of Obligation upon completion

BACKGROUND: ICP INITIATIVES IN MALAYSIA

ICP IS USED AS AN ECONOMIC TOOL

  • Develop knowledge based economy through technology acquisition and commercialization as well as relevant resources development
  • Create competitive national economy by positioning local players and products into global supply chain leveraging on foreign suppliers platform which is faster than the normal commercialization method
  • Distribute fairly the benefits from major Government procurement program to the local sectoral industry players through the Economic Enhancement Programme (EEP).
  • Increase jobs creation and contract manufacturing opportunities leveraging on Government networks.

The Malaysian government is dedicated to propelling national technology, industry, and economy to new heights. This goal aligns with the pursuit of a competitive position in the global market, supported by a comprehensive economic vision and strategic development plan. To achieve this, the New Economic Model and high-income community development agenda must be actively materialised.

The ICP policy (PK1.7) applies to all government procurements of activities, supplies, and services. The ICP leverages government spending to promote economic value addition through effective and strategic activities alongside the procurement contract.

The ICP serves as a powerful tool to:

  • Fuel a knowledge-based economy: This is achieved through technology acquisition and commercialization, alongside targeted resource development. ICP fosters knowledge transfer and innovation, propelling Malaysia towards a thriving knowledge economy.
  • Boost global competitiveness: The programme helps position local products within the global supply chain. By leveraging the expertise and reach of foreign suppliers, ICP can accelerate this integration, propelling Malaysian companies to compete on a global stage.
  • Align with national economic goals: ICP activities are carefully chosen to contribute to the broader socio-economic development agenda. This ensures that government procurement drives not only economic growth but also broader societal well-being.
  • Generate job opportunities: By fostering new industries and technologies, ICP creates high-value jobs and strengthens the workforce. Additionally, the programme incentivises local contract manufacturing, further expanding employment opportunities.

In essence, the ICP transforms government procurement from a mere transaction into a strategic investment in Malaysia’s future. By fostering collaboration, knowledge transfer, and innovation, the programme unlocks significant economic potential and helps propel the nation towards its ambitious goals.

The Committees

The ICP implementation in Malaysia is supervised by various committees which includes:

The highest level of ICP Committee in Malaysia, assisted by the Government Procurement Division, Ministry of Finance as the secretariat.

A committee established at the Agency level that oversees the implementation of the ICP, assisted by the Undersecretary Procurement Division (SU BPK) of the procuring Ministry (or its equivalent if the procurement is made by the STU) as the secretariat.

A committee formed at the ICP Management Unit (IMU) level at the respective Agency, assisted by the IMU as the secretariat.

A committee formed at the procuring Agency to conduct evaluation on the proposed ICP, assisted by TDA as the secretariat.

The Reporting Channel

The current ICP Policy and Guidelines has specified the reporting channel with a clear segregation of roles and functions for monitoring and information consolidation purposes. MOF is the highest authority that manages the ICP implementation assisted by TDA for the ICP Policy operationalisation.

Follow Us

Overview of ICP

In recent decades, countries have prioritized procurement activities like offset, industrial participation, and industrial collaboration to maximize economic gains. New approaches are emerging, focusing on targeted activities and favouring new business ventures over existing ones.

 

Malaysia’s Journey

Malaysia exemplifies this trend. Starting with countertrade in the 80s and 90s, then evolving to offset in the 2000s, the nation now utilises the ICP. This robust programme encompasses both defense and non-defense capital procurements.

By leveraging procurement, ICP arrangements, integrated into contracts, empower buyers to secure additional value beyond the purchased goods or services, thereby contributing to national economic growth.

 

A Structured Framework

Malaysia’s ICP implementation draws guidance from the National ICP established by the Ministry of Finance in 2014. This framework intertwines with key national initiatives like Vision 2020, Five-Year Development Plans, Industrial Master Plans, NPSTI, and ETP.

 

Tailored Approaches

Countries vary in their procurement-related goals and prioritise activities based on their development level (developed, newly industrialised, or less industrialised). Companies, responding to these goals, undertake a range of activities to fulfil their obligations.

 

History of ICP

The Malaysian government has a long and evolving history of leveraging procurement activities to stimulate national economic growth. This journey began in 1983 with the “countertrade” programme, spearheaded by the Ministry of International Trade and Industry (MITI). This initiative focused on securing additional economic benefits, often in the form of technology transfer or local production commitments, alongside traditional procurement transactions.

In the mid-1990s, the programme saw a shift towards defense-related procurements. Under the Ministry of Defence (MinDef), “offset procurement” emerged, specifically targeting technology transfer and industrial development benefits within the defense sector.

By 2004, recognizing the changing global landscape and evolving needs of the Malaysian economy, the government launched a “commercial countertrade programme”. This initiative was under the Malaysia Industry-Government Group for High Technology (MIGHT), in charge of monitoring and facilitating the programme.

Responding to ongoing domestic and global trends, the programme underwent further refinement. Recognizing the limitations of the “countertrade” terminology, it transitioned in 2014 to the “Industrial Collaboration Programme (ICP)”. This robust framework extends beyond traditional offset principles, encompassing a wider range of collaborative activities that contribute to sustainable industrial development, technology transfer, and knowledge sharing.

This historical trajectory demonstrates the Malaysian government’s commitment to continuously adapt and improve its procurement initiatives to maximize their economic impact. From its early “countertrade” roots to the current ICP, the programme has consistently evolved to meet the changing needs of the nation and its industries.