Ministry of Finance Malaysian Industrial Collaboration Program ICP

Ministry of Finance Malaysian Industrial Collaboration Program (ICP)

Who is TDA? Technology Depository Agency (TDA) is an entity under Ministry of Finance. The inception of TDA was mooted from a Cabinet decision in 2002. Ministry of Finance TDA’s core function is to plan, manage, administer and monitor all Industrial Collaboration Program (ICP) activities implementation in Malaysia to ensure compliance to the processes and requirements as stipulated in the Malaysia’s Procurement Policy.

What is Industrial Collaboration Program (ICP)? A program that add value and optimize Government funded procurement programs VALUE-ADD RETURNS INVESTMENT Net Return Investment Government Procurement Growth of Economy, Industry & Technology Payment Procurement Requirement National ICP Policy (3 rd Edition) OEMs/STU Sectors • Cybersecurity • Transportation/Urbanization • • Rail Aerospace Maritime Automotive/Land Transport • Energy Security • Water Security • Food Security • … ICP Implementation Products Supply, Works and Services Contract Awarded Smart Partnership HCD MLC / Subcont. Collaborations Target Industry Market Access

ICP: Knowing the Outcomes The Philosophy : Set the goal (fixed) to ease maneuverability Complementary & Win-win situation Enhancement of local socio economic and strengthening of the local industry capacity and capability to create ‘value for money’ on Government procurement Technology transfer, development and nurturing Market access, global supply chain and commercialization ‘Thru-life-support’ for Government strategic asset Develop and strengthen local industry’s capacity and capability and maximize local content Impact Approach Needs Human Capital Development Source: Policy Proprietary TDA 2017 and Guidelines on Industrial Collaboration Program (ICP) in Government Procurement, 2014 4

ICP Elements Industrial Collaboration Program (ICP) Economic Enhancement Program (EEP) Applied onto Government Procurement from Local Company (as the prime contractor) worth more than RM 100 million Offset (Direct / Indirect) Counter Trade Applied onto Government procurement from foreign supplier worth more than RM 50 million Mechanism of ICP Credit Value (ICV) generation to ensure the ICP pillars are addressed Proprietary TDA 2017 Category Scope

ICP: Driving the local economy Activities Procurement ICP Proprietary TDA 2017 Impact Outputs Asset Acquisition Local industry capability / capacity development / structuring Operation Economic Generation MRO/ Technical Know. Local services / how/ local & global Technology industrial Enhancement/ participation Development • Cyber Security • Urbanization/Transportation • Energy • Other sector…. Economic growth / sustainability / inclusivity

ICP: What we have learned Malaysian Case • LONG TERM relationship via complementary approach • ICP is a TOOL that could be leveraged effectively for national economic and technology development • SUSTAINABLE outcomes as a result of ICP real ‘WIN-WIN’ situation to the providers and recipients it on • TRANSPARENCIES is a core aspect of ICP activities implementation • ICP providers and national needs ALIGNMENT ta c e p Ex • Support from the Government and missionaries to ensure EFFECTIVE implementation; • SINCERITY by the ICP providers to provide an effective program; • Paradigm shift to view the ICP COST AS INVESTMENT; • THOROUGH UNDERSTANDING by the ICP providers on the needs and processes in having the ICP properly implemented (to avoid manipulation) Proprietary TDA 2017 s e ng e ll a h C 7

The perspectives BUSINESS • Cost shall be regarded as investment: • The procuring agency • The obligors • The ICP activities shall be sustainable (not a one off type) • The ICP ‘obligations’ shall be regarded as opportunities GOVERNANCE • There shall be a mutual understanding (willing provider willing recipient) supported with realistic implementation plan • Compliance to the requirements specified by the Government NATIONAL STRATEGIC REQUIREMENTS • Identification of long term national goals and focus areas • The Government shall strongly support the initiative by: • providing effective policy, clear direction, efficient management structure and process • synergised/consolidated effort at the national level Proprietary TDA 2017

Malaysia ICP Management Framework Implementation Pre-Implementation ICP Requirement Document • Articulate ICP Strategies • Determine the Value • Formalize an IC Industry Database Market Intelligence Technology Database Bidders’ ICP Proposal Evaluation Assess Maximize OEMs returns for businesses socio and Identify economics, potential technology beneficiarie and local s capability industry and development competency Clarification / ICP Program Agreement Post-Implementation ICP Program Implementation Finalization of activities, deliverable s, outcomes and timeline ICP activities monitoring to ensure deliverables performance ICP Program Assessment Carry out ICP assessment audit ICP Program Completion Relief from program upon completion Negotiation ICP Recipient Audit Surveillance Audit Post Implementation Audit ICP Strategy Proprietary TDA 2017 *Source: Policy and Guidelines on ICP in Government Procurement 2014 9

Conclusion es om From Client Perspective & n e l o p ati o Pe aniz g r O Sincerity, transparencies and integrity of the ICP providers and recipients Proprietary TDA 2017 c o r P s s e Adherence to the National ICP Policy and Malaysian ICP Management Framework c t u O Economic impact via a workable program Sustainability of the program in support of Malaysian National initiatives Assistance for local companies to participate in the global market 10

Thank you! • [www. tda. my] • [+603 8893 5411 ] • Contact Information – info@tda. my Proprietary TDA 2017 11