Chapter 6: Supporting National Defence Industry Two vital elements are needed to support Malaysia’s defence capabilities. These elements are the local defence industry and defence science and technology. The contribution from these sectors is critical to ensure Malaysia achieves defence selfreliance. The defence industry is the main conduit for accessing sophisticated technology and defence systems as well as to provide life support structure and services which plays a role in increasing the serviceability rate of defence equipment. A highly developed local defence industry will reduce the country’s dependence on overseas original equipment manufacturers. At the same time the role of the defence industry in the country’s socio-economic development needs to be recognised. The defence industry contributes towards job creation, savings in foreign exchange, technology transfer, foreign direct investment, dual-used technology and developing downstream industries for other economic sectors. Malaysia’s defence industry is currently able to partially meet the demand for military equipment including assault weapons, ammunitions of different calibres, unmanned aerial surveillance vehicle, patrol crafts, trucks, ICT solutions and daily rations for troops. The local defence industry is also capable of carrying out maintenance works, repair, rehabilitation, upgrading and modernization besides producing parts and components for military equipment for local and domestic markets. The Offset Programme Guidelines and Policy for defence equipment acquisition was published in 2004 to ensure the success of the Ministry of Defence’s offset programmes. The objectives of the offset programme include the following: MALAYSIA’S NATIONAL DEFENCE POLICY Page 29