How to do Business in Malaysia

摘要

The weakening of Malaysia's currency, the ringgit, makes it difficult for the MoD and the ATM to consider any foreign defence procurement. On the other hand, given the limited indigenous defence industrial base, procurement will still be dependent on foreign sources, though under its own offset rules, foreign companies will have to provide offsets and transfer of technologies to Malaysia. While local companies fulfil the bulk of the ATM MRO needs, many of the spare parts still has to be imported, due either to local industry being unable to produce such parts or such parts being controlled items or only produced by Original Equipment Manufacturers (OEMs). At the same time, defence R&D, along with technical defence expertise, is fairly limited in Malaysia, hence national companies often have a need for foreign subcontractors for support, assistance, and expertise. Malaysia will therefore continue to depend largely on foreign companies for both its procurement and defence support needs in both the near and long terms.