THE LAUNCHING CEREMONY OF TAMPING SIMULATOR FOR NEW ON-TRACK MACHINERIES
AN INDUSTRIAL COLLABORATION PROGRAMME PROJECT UNDER THE PROCUREMENT OF DESIGN, MANUFACTURE, SUPPLY, DELIVERY, TESTING & COMMISSIONING OF NEW-TRACK MACHINERIES BY THE MINISTRY OF TRANSPORT
MR AZRIZAL MARZAKI, SENIOR DIRECTOR, PROGRAMME OPERATION DIVISION, TDA
25 October 2017 | TWA (MALAYSIA) SDN BHD, BANGI
YANG BERHORMAT DATUK AZIZ KAPRAWI, DEPUTY MINISTER, MINISTRY OF TRANSPORT (MOT)
YANG BERBAHAGIA DATO’ CHUA KOK CHING, DEPUTY SECRETARY-GENERAL, MINISTRY OF TRANSPORT (MOT)
YANG BERBAHAGIA DATO’ MOHD AZMI MOHD AMIN, MANAGING DIRECTOR (TWA (MALAYSIA) SDN BHD
YANG BERBAHAGIA DATO’ TAQI MOHAMED OSMAN, CHIEF EXECUTIVE OFFICER (TWA (MALAYSIA) SDN BHD
YANG MULIA RAJA KHAIRUL ANUAR BIN RAJA ABDUL KARIM, PRINCIPAL ASSISTANT SECRETARY, GOVERNMENT PROCUREMENT DIVISION, MINISTRY OF FINANCE (MOF)
Dato’-Dato’, distinguished guests, senior management and officers from respective ministries, agencies and private sectors.
Our industrial collaborator, TWA (Malaysia) Sdn. Bhd. (TWAM)
Members of Media
Ladies and Gentlemen
Assalamualaikum w.b.t., and good morning,
- First and foremost, allow me to express my deepest appreciation to our Guest of Honor, Yang Berhormat Datuk Aziz Kaprawi, Deputy Minister of Transport, Ministry of Transport Malaysia for spending time off his hectic and very demanding schedule, to be here with us today in witnessing one of the most historic events in the history of ICP implementation. I would like to also acknowledge our industrial stakeholders here which is TWA (Malaysia) Sdn Bhd. I deeply appreciate each and every one of your presence today.
- Technology Depository Agency (TDA) is an agency established under the purview of Ministry of Finance Malaysia (MOF) as the implementer of Industrial Collaboration Programme (ICP) Policy and Guidelines. The ICP, or the Offset back-then was actually initiated during late 80s when MOF issued the Treasury Circular Letters No. 11, 1987 Guideline for implementation of Countertradein Government Procurement. In 2002, a study on Offset Program of the National Defence Procurement was conducted and this was when the idea of having TDA as governing-body was mooted during one of Cabinet Meetings.
- TDA, which back-then under the purview of Prime Minister Department was entrusted to manage the offset programmes among others for defence procurements and Trent 900 engines procurement by Penerbangan Malaysia Berhad, the first commercial and non-defence offset management which involved Rolls Royce as the supplier and Offset Provider. I am delightful to share, that the offset programme has managed to enhance the capability of national aerospace industry throughout programmes such as aerospace component manufacturing, MRO certification and establishment of Aerospace Malaysia Innovation Centre (AMIC) whereby Rolls Royce is one of the lead members.
- This has prompted MOF to introduce Offset Program as a mandatory requirement for every Government strategic procurement in 2011. In 2014, MOF has revised the policy to include the needs to have ‘Offset obligation’ to the local main contractors and therefore the policy was further enhanced as the Industrial Collaboration Programme (ICP) that have 3 main implementation components which are Offset, Economic Enhancement Program (EEP) and Counter-Trade. Among the objectives outlined in the policy is to build a sustainable and competitive local industry via participation of local industry players (e.g. SME etc.) in the global supply chain.
Ladies and Gentlemen
- To date, TDA is managing 88 ICP Programmes triggered from various Government strategic procurements worth about RM35.2 billion to the extent of 2020 – 2021. Currently the programmes and projects which have been completed (Trent 900 & MRT 1) are worth about RM4.23 billion and audited ICP Credit Value (ICV) is RM5.2 billion which incurred 123% of impact ratio in total. The ICV is generated based on the level of impact and effectiveness of the ICP Project to the needs in enhancing local capability to greater height. It is therefore, can be concluded that for every one Malaysia Ringgit (RM1) that is spent on the procurement, the Government is getting the returns of about RM5 in the form of quality investment, job creation (K-Worker), technical enhancement and technology transfer. Presently, ICP programmes under MOT are worth of RM14 billion and to date, RM3.9 billion worth of ICP projects are currently being implemented which is 28% of total ICP programmes.
- Moving towards 2021, TDA is expected to create more value added ICP activities that contribute to the country’s economic. Although this seems quite challenging under current economic uncertainties, the target is achievable provided there are continuous support from the Government, ministries, agencies, local industry players and ICP recipients. Therefore, it is vital for every single stakeholder to work as a team to create the effective collaborative platform in moving towards common goals, in-line with the objectives spelt out in the ICP Policy and Guidelines.
- Having said that, the event we are witnessing today is really an outstanding achievement, aligned with the aspiration set under the ICP implementation. TWA (Malaysia) Sdn Bhd (TWAM), whom the supplier for New On-Track Machineries has delivered an ICP Project of Tamping Simulator Training. This project involves investment of the Plasser and Theurer 09-3D Tamping Simulator and ALC Simulator which valued at RM2.5 million and worth about RM13 million of ICV, is a breakthrough technological advancement in the area of track maintenance by TWAM.
- The local ICP Recipient for this project, KTMB and other potential recipients will definitely benefit from this technology transfer in supporting activities towards track maintenance. The simulator simulates operations of the tamping machine’s two works stations and is usable by maximum of two people at one time with practical use backed up by theoretical sessions in classroom. The advantages of using simulator over on-track training is the greater flexibility available to meet the needs of the individual student by preventing a range of difference but relevant challenges that can be repeated all within the same setting. Having machine operators to train in the simulator first before operating the actual machine means less possibilities of damage to the machine and tracks and eliminate the cost of repairs in the future.
- The investment of this simulator was made possible by the successful ICP project negotiation led by TDA team as the ICP Management Unit (IMU) that takes into account local industrial needs in being competitive from the perspective of technology adaption and cost-saving measure. This is another success story of having an ICP as means of industrial collaboration with mutual benefits to the stakeholders.
- Apart from Malaysia, other countries including Turkey and South Korea have benefited from ICP or other similar activities contributing to their local industry development. TDA believes that Malaysia would attain similar or even greater achievements from this ICP implementation provided every stakeholder put their synergy together in ensuring ‘value of money’ on every RM we spent on the procurement. TDA will always be pro-active in facilitating our local industry players to work hand-to-hand with globally renowned OEMs and quantum leap them in participating global supply chain.
Ladies and Gentlemen
11. May I take this opportunity again to express my deepest appreciation to Yang Berhormat Datuk Aziz Kaprawi and every stakeholder that is presence in this event. We are truly glad undertaking this ICP mandate knowing to have full supports from all of you. I would like also to congratulate my TDA team and TWAM team whom have been working hard for the past weeks in ensuring the successful of today’s event.
Thank you very much. Assalamualaikum w.r.t.b.