KUALA LUMPUR: Malaysia's offset authority, Technology Depository Agency Bhd (TDA), aims to achieve an economic value of RM31 billion until 2021 from the public procurement offset programme, started in 2010.
The offset programme is an avenue for the Government to maximise value by tapping into the profits of companies that win high value public procurement, beyond the specific financial threshold.
The companies are obligated to develop industries which are high job creation oriented and new business developments, which can be related to the industries in which they won contracts (direct offset) or projects identified by the Government as strategic industries (indirect offset).
TDA chief executive officer Major (R) Zailani Safari said the offset programme would benefit the development of local industry and ensure high-skilled job creation as well, while contributing to the gross domestic product (GDP) in the long run.
"We aim to contribute at least 1% to 2% to the GDP by 2020," he told Bernama, adding that the offset programme had created 2,000 high-skilled jobs to date.
Among the various ongoing projects with offset programmes are the Mass Rapid Transit (MRT), involving technology transfer and building local capacity to assemble rolling stock.
Zailani also cited another recently completed offset programme with aircraft engine manufacturer Rolls-Royce which created an economic value of RM4.4 billion.
TDA was officially set up under the Finance Ministry last year to oversee the country's offset programme, known as the Industrial Collaboration Programme (ICP), as well as formulate the ICP Strategic Implementation Programme.
Elaborating on the ICP, Zailani said it was a platform for impactful outcomes via development of technology and economic development needs, based on the current national resources.
He said it also helped to develop targeted industry capability and capacity while contributing to national economic growth.
"It creates a 'win-win' platform for sustainable businesses and participation in the global supply chain," he added.
According to Zailani, the "win-win" situation should represent reasonable benefits and risks to the recipient and provider, as agreeable to both parties. - Bernama
Sources: The Star
