KUALA LUMPUR, April 23 — The Ministry of Defence has awarded eight Industrial Collaboration Programme (ICP) offer letters worth RM1.4 billion to eight local companies, in a move to enhance the country’s defence industry capabilities.Defence Minister Datuk Seri Mohamed Khaled Nordin said among the companies involved were Boustead Heavy Industries Corporation Submarine Engineering Services Sdn Bhd (BSES), Lumut Naval Shipyard Sdn Bhd (LUNAS), Labuan Shipyard Sdn Bhd and Preston Shipyard Sdn Bhd.He said the granting of ICP offer letters was aimed at facilitating the transfer of knowledge and technology from original equipment manufacturers (OEMs) to qualified local companies, with a focus on enhancing maintenance, repair and overhaul (MRO) capabilities for warships.“Once they have acquired the capabilities, there will be no need for our warships to be sent abroad for MRO at foreign ports or dockyards, as we have developed the capabilities of local companies,” he said at a press conference held in conjunction with the ICP contract signing and award ceremony here yesterday.The ICP award forms part of 24 documents, comprising 12 procurement contracts and four Letters of Intent (LOIs), signed in conjunction with the Defence Services Asia (DSA) and National Security Asia 2026 exhibition, with a total value of RM3.542 billion.Mohamed Khaled said that, in addition to the maritime sector, the ICP this time also includes radar maintenance training to enable local companies to undertake upgrading works on existing radar systems in the country.He said the move is in line with the objectives of the National Defence Industry Policy (DIPN) to build self-reliance and gradually strengthen the role of local industries in contributing to the country’s defence sovereignty.“This is a very important segment in our procurement. We require companies awarded contracts to transfer knowledge of a certain value,” he said, adding that the government would adopt the same approach to develop production capabilities for products such as rockets, missiles and drones in the future.Commenting on the selection of companies, Mohamed Khaled stressed that firms awarded the ICP must be vetted for their capability to absorb and adopt the technology.He said the ICP offers wider benefits as a major catalyst in developing a sustainable, competitive and high-technology defence industry ecosystem.According to Mohamed Khaled, the main focus is now shifting from MRO to high-value manufacturing and technological innovation, in response to an increasingly complex strategic environment.“The implementation of the ICP is expected to have a positive impact on the economy and promote long-term strategic autonomy through investment and innovation in artificial intelligence (AI) in defence systems,” he said.Mohamed Khaled said it also aims to strengthen Malaysia’s position as a regional defence hub and a key player in the global defence supply chain, as well as create highly skilled employment opportunities and ensure self-reliance. — Bernama