Malaysian defense to use local products

KUALA LUMPUR, Malaysia, June 7 (UPI)

Malaysian Defense Minister Datuk Seri Ahmad Zahid Hamidi stated that defense industries shortly will be required first to use indigenous products.

Hamidi said the policy was decided upon at the meeting of the Defense Industry Council, Enforcement and Security earlier in the week, Bernama news agency reported Tuesday.

Hamidi said, "We've decided that the Defense Ministry, Home Ministry and enforcement agencies must use local products," a decision that could strengthen the country's nascent defense industry.

Another reform by the Defense Industry Council, Enforcement and Security gathering was that any Finance Ministry contract to purchase military equipment must be made directly with the armaments manufacturer instead of through an intermediary trading company to reduce the chances of high commission fees being charged to the manufacturer.

The meeting concluded with participants directing the Finance Ministry to implement a centralized contract system to reduce competition between the country's defense and security industry components.