03 Oktober 2012

Matrade Eyes RM761mil from Indochina Mission

03 Oktober 2012

Locally-made defence products to be exported under the potential contracts include unmanned aerial vehicles, fast interceptor craft, specialised military vehicles, simulation and training equipment, software, communications/command systems, as well as military maintenance, repair and overhaul services. (photo : UST)

KUALA LUMPUR: The Malaysia External Trade Development Corp (Matrade) expects to generate sales of RM761mil from the Specialised Marketing Mission (SMM) on the defence industry to Indochina.

The SMM, the first such mission by Matrade, was held in Phnom Penh and Hanoi over six days from Sept 10.

In a statement yesterday, Matrade said Cambodia saw potential sales of RM629.5mil while Vietnam concluded potential sales of RM131.5mil.

The mission's objectives included the expansion of trade and economic collaboration between Malaysia, Cambodia and Vietnam in defence-related products and services, while strengthening existing business networking with the two nations.

Eight participating Malaysian companies were involved in a number of meetings including with the Deputy Prime Minister of Cambodia Gen Tea Banh who is also the country's defence minister.

The delegation also met with the Cambodian deputy commander of the armed forces cum the commander of the Prime Minister's bodyguard unit, the most influential and important military service in Cambodia, as well as with the army, navy, air force and police.

In Vietnam, the mission met with the Vietnamese foreign relations department responsible for the Vietnamese defence industry, and conducted business visits to two government-linked companies that are among five such agencies allowed to trade in defence and security products and services for the Vietnamese government.

A seminar on Malaysia's defence technology and equipment was also held in both cities.

Matrade said despite some difficulty in doing business in the two Indochinese nations, the mission was successful in securing outstanding potential sales including for unmanned aerial vehicles, fast interceptor craft, fire, rescue and specialised vehicles, simulation training equipment and software, communications and command systems, MRO and design services.

A number of issues were identified including promoting only Malaysian-made products and services to avoid intellectual property issues, and the need for better market intelligence and flexible payment terms.

As a follow-up, immediate arrangements need to be made for the Vietnamese and Cambodian end-users to visit Malaysian production facilities, Matrade said.

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