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Oleh/By		:	DATO' SERI DR. MAHATHIR BIN MOHAMAD 
Tempat/Venue 	: 	LANGKAWI, KEDAH 
Tarikh/Date 	: 	05/12/97 
Tajuk/Title  	: 	THE LAUNCHING OF THE BLUEPRINT FOR 
			THE DEVELOPMENT OF THE MALAYSIAN 
			AEROSPACE INDUSTRY 



     1.    Firstly,  let me extend a warm welcome to  everyone
    gathered  here to witness the launching of the  Blueprint
    for   the  Development  of  the  Aerospace  Industry   in
    Malaysia.
    
    2.    It was here in Langkawi during the LIMA '95 that  I
    entrusted  the  task of formulating an  aerospace  policy
    for  the country to MIGHT.  Since, then, MIGHT has formed
    a  consultative platform i.e. MIGHT Interest Group  (MIG)
    in   Aerospace  which  comprise  individuals   from   the
    aerospace   industry,   government  agencies,   academia,
    consultants and foreign investors as the reference  point
    for  ideas  and information.  The Blueprint was completed
    last   year   and  subsequently  received   the   Cabinet
    endorsement in September 1997.
    
    3.    The Government believes that the aerospace industry
    is  very  important  to the overall  development  of  the
    country.   There is a critical need for the restructuring
    of  the aerospace industry and its players.  The industry
    itself  encompasses so many sub-sectors from aviation  to
    space,  from overhaul and maintenance activities  to  the
    manufacturing of a whole aircraft.  Malaysia is  a  small
    country   with  a  small  domestic  market  and   limited
    resources.  On the other hand, the aerospace industry  is
    very   regulated   and  integrated  and   support   those
    companies  which are already established  and  possess  a
    strong reputation.
    
    4.    Our  limited resources will have to be shared  with
    the  other  fast  expanding sectors, such as  automotive,
    oil  &  gas,  multimedia, etc.  Therefore  the  aerospace
    industry   cannot   afford  to  be  too   divergent   and
    fragmented.    It  is  therefore  imperative   that   the
    industry  adopts the national vision as its main  thrust,
    and  approaches  the  aerospace  development  task  on  a
    consolidated  basis.   This  will  provide  a  nationally
    consistent  framework for identifying and evaluating  key
    initiatives to be developed.
    
    5.    The  blueprint  recommends the establishment  of  a
    national   level  steering  committee  to   oversee   the
    development  of the aerospace industry.  This  committee,
    in  the  form of a national aerospace council, will  make
    key  decisions in the areas of directions, priorities and
    strategies for the industry.  The council will adopt  the
    Smart  Partnership principles with the  participation  of
    leaders from both the public and private sectors and  the
    study  team  has  requested that the Prime  Minister  and
    Deputy  Prime  Minister  to be the  Chairman  and  Deputy
    Chairman  of  the  Council respectively.   This  will  be
    considered by the Government.
    
    6.    In  addition  to the council, the  government  also
    supports  the  idea of a national aerospace  coordinating
    body  to  act  as  a  reference  point  for  the  various
    aerospace activities and investments.  The new body  will
    consolidate  the  current  national  initiatives  in  the
    aerospace  sector  and  to further  spearhead  Malaysia's
    involvement  in  the  industry.   It  will   become   the
    reference  point  for the managing of  offset  programmes
    and   act  as  an  intermediary  for  local  and  foreign
    interests in the industry.
    
    7.    Taking into account the industry expansion into new
    and  unexplored  territory of aerospace  activities,  the
    existing  Department of Civil Aviation will  have  to  be
    upgraded.   The  proposed Civil Aviation  Authority  will
    provide  the  industry  with  a  monitoring  as  well  as
    regulatory  function in the areas of  airworthiness,  air
    traffic control and aerospace product/services.
    
    8.    A  National  Human  Resource Development  Programme
    will  also  be put in place to ensure that the  quantity,
    skills   and   costs  of  personnel   is   adequate   and
    competitive.   It  will  take into  account  the  various
    categories  of labour required in the aerospace  industry
    such  as  toolmakers,  aircraft  engineers,  test  pilot,
    system  analysts  and  so  on.   In  addition  to   that,
    Malaysia  hope to establish a premier educational  centre
    for  aerospace which will serve the domestic as  well  as
    the regional need for education and training.
    
    9.    The aerospace industry houses the most complex core
    technologies  which  are applicable to  other  industries
    and  provide  critical technologies for the  future.   It
    provides  a  gateway  to  technological  acquisition  and
    therefore   it   is  essential  that  these  technologies
    acquired  through procurement and offsets would help  the
    nation  to  gain  access to a foreign  market  and  fully
    realise our national competitive advantage.
    
    10.   Malaysia's  entry  into the space  sector  will  be
    further   strengthened  by  the  establishment   of   the
    Malaysian Agency for Space Administration or MASA.   MASA
    will   ensure  the  efficient  management  of  our  space
    venture  which  include  the development  of  a  national
    satellite  programme where it could help to  develop  our
    industrial and technology capability in this area.
    
    11.   For  the  successful implementation  of  these  key
    programmes,  the  industry must be equally  supported  by
    policies  which  are  both rationale  and  enhancing.   A
    national  procurement policy which  emphasises  on  local
    products/services   and   technology   will   ensure    a
    sustainable economic development and reduces  import  and
    financial  outflow.   This policy  is  important  in  the
    procurement    of   military   equipment,   privatisation
    projects, offset programmes and so on.
    
    12.   The  focus of the recommendations in the  blueprint
    is  on  the  government because it sets  the  legislative
    framework  and  policy.   However,  the  success  of  the
    industry will be a responsibility that goes much  farther
    than   the  government.   Action  and  participation   is
    required by all the stakeholders.
    
    13.   If  we  can  achieve all that is set  out  in  this
    blueprint, Malaysia will have an aerospace industry  that
    will  be globally-competitive and widely acknowledged  as
    what  has been achieved by our electronics and automotive
    industry.
    
    14.   It  is  only  appropriate  that  LIMA  becomes  the
    location  for  launching this blueprint.  The  completion
    of  this  very important task given to MIGHT  with  great
    responsibility and professionalism is commendable.
    
    15.   It now gives me great pleasure to officially launch
    the  Blueprint  for  the  Development  of  the  Aerospace
    Industry in Malaysia
 
 



 
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