15 Juli 2011

BAE Systems Keen To Help Malaysia Develop Aerospace Sector

Eurofighter Typhoon (www.eurofighter.com)

UK-based defence and aerospace company, BAE Systems, is keen to help Malaysia develop its aerospace industry to further boost bilateral relations between Britain and Malaysia.

Its group business development director, Alan Garwood, said this interest would be expressed to Prime Minister Datuk Seri Najib Tun Razak during a special dinner for industry players organised in conjunction with his official visit to UK later this week.

"The British government is keen to revitalise relationship with Malaysia and I am sure both prime ministers will talk on the subject and we are keen on an industrial partnership that can enable us to contribute to help Malaysia achieve Vision 2020," he told Bernama in an interview last week.

The official visit, which entered day three, would see Najib meet up with over 20 top UK companies in different sectors.

Garwood will represent BAE Systems.

"We are keen to assist in the development of aerospace industry here both in design and manufacturing support and we are open to discussions in any way that Malaysian government wants to develop this sector.

"I hope to be able to mention it to Prime Minister Najib this week," he said.

BAE Systems is still waiting for the Malaysian government's decision on Typhoon to replace Malaysia's MiG-29N.

The company has submitted a rough order of magnitude estimate in March.

Malaysia has been seeking more investments in aerospace industry by promoting the country as a viable location for the manufacture of aircraft components, maintenance, repair and overhaul for both regional and global markets.

BAE Systems, as well as other global defence firms, are currently shifting their market focus to Asia-Pacific and Middle East as developed economies are trimming their defence budgets to focus on economic recovery.

"All defence companies are seeing defence budgets a bit flat in Europe and the US while those in Middle East and Asia generally are rising because of stronger economic activities," Garwood said.

Citing Malaysia as an example, he said, the economic growth for the past few years had been phenomenal and no European countries had managed what Malaysia has done in terms of growth.

In terms of strategy, BAE Systems is looking at partnerships or joint ventures with local companies as the government prefers local companies especially when it comes to national security and defence.

"We tend to work with local partners for joint ventures and transfer high level of technology within our investment and provide local jobs. We have good track record here; we have build part of aircraft, ships and missiles for the Malaysian government," he said.

One of the local partners BAE Systems had teamed up with is Composites Technology Research Malaysia Sdn Bhd (CTRM).

CTRM, incorporated in November 1990, has been part of global supply chain for composites aero structures for major aircraft manufacturers.

"This is the uniqueness of our business model. Some of our competitors are just supplying aircraft from where they come from but for us, we usually form a relationship with local partners in terms of investment, jobs and technology transfer," he said.


Bernama.com

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