From 26 - 28 April 2016, the first session of Enhancement Workshop on Industrial Collaboration Program (ICP) Policy and Guideline for Government Procurement was held in Awana Resort, Genting Highland. The workshop coordinated by TDA has also drawn participation of about ten (10) representatives from the Government Procurement Division of Ministry of Finance (MOF), and Industrial Defence Division and Procurement Division of Ministry of Defence (MINDEF).
The objectives of the Workshop were to discuss and brainstorm the improvement of governance and management of ICP with regard to Government’s procurement which varies not only among Ministries and Agencies but also Government-Owned Companies as well as Local Prime Contractors. There were also several major deliberations that have taken place including the overall direction of offset program and obligations and compliances by ICP Providers and Recipients through various mechanisms (e.g. tier-based agreement, performance bond etc.).
The Enhancement Workshop continued with Session 2 that was held from 19 – 20 May 2016 at Bangi-Putrajaya Hotel. The representatives from MOF and MINDEF together with TDA discussed and deliberated the following areas:
After thorough discussion and consideration, there were still certain areas such as First-Tier and Second-Tier ICP Agreements and Post-Implementation Audit (PIA) that will require further scrutiny with relevant parties prior to completion of the enhanced ICP Policy and Guideline draft document. It is expected that the draft document will be presented to the other respective Ministries / Agencies including members of the Malaysia ICP Executive Committee (MIEC) prior to endorsement as a newly revised ICP Policy and Guideline for immediate implementation.
Policy and Guideline on Offset Programs in Government Procurement was officially announced and implemented in 2011. The objectives, among others, are to encourage economic growth for the country through transfer of technology and know-how, human capital development as well as maximizing the usage of local contents.
The implementation of this Policy was focusing on foreign Original Equipment Manufacturer (OEM) whom have won Government’s contract which exceeds threshold value of RM 50 million. In 2014, the Policy was revised to a newer version called Industrial Collaboration Program (ICP) Policy and Guideline.
The revised Policy is to enhance the coverage of program’s component which include local prime contractors that have won Government’s contracts exceeding value of RM 100 million via Economic Enhancement Program (EEP). In addition, another parallel program’s component being implemented is Counter-Trade. The ICP Policy and Guideline was again set to be refined in ensuring greater aspect of governance and implementation with regard to overall policy direction towards economic and industrial growth.