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By D. Arul Rajoo
BANGKOK, Nov 3 (Bernama) -- Asean countries, which spent US$18.75 billion (excluding Myanmar) for new defence equipment in 2008, have agreed in principle to set up a defence industry council similar to the European Defence Agency and European Defence Industry Council, Malaysian Defence Minister Datuk Seri Dr Ahmad Zahid Hamidi said here.
He said that while the US$18.75 billion figure was small compared to the global defence expenditure, it does not include other associated expenditure such as support, logistics and training.
According to him, the 10-member grouping felt that such collaboration under the Asean Security and Defence Industry Council (Asdic) would enable them to tap the huge security and defence market in the region and reduce dependency on other parts of the world.
"Some of the ministers suggested that we include industry players in the proposed Asean Security and Defence Industry Council. Indonesia, for example, asked us to prepare a comprehensive paper on this," he said after attending the retreat of the Asean Defence Ministers Meeting here.
He said his Asean counterparts had suggested that they develop the industry according to the strength and facilities available in each country, as well as starting with a niche market and later collaborating with global players.
Dr Ahmad Zahid said that in the West, the defence industry had been instrumental in various technological breakthroughs, creating spin-offs into the civil sectors and becoming a major source of revenue for the participating countries.
He said countries like Japan, South Korea, Taiwan, Brazil, South Africa, India and China, which had also adopted similar approaches, had developed very competitive industries, both defence and dual-use based.
The proposed collaboration, he said, would integrate various industrial and technological capabilities such as aerospace, weapons, automotive or naval sectors that have already been developed by some of the Asean countries.
Citing such initiatives in Europe, he said it could be government-funded projects which included building ships, tanks and others which were not just for military purposes but for humanitarian efforts, disaster relief and joint exercises such as training, border patrols and peace-keeping missions.
"There are bound to be issues and challenges such as ownership of technology, security issues, export control and trust. But we have to start somewhere. It may not necessarily begin with manufacturing, we could also look at maintenance, spares and other forms of logistics support," he said.
Malaysia, he said, was already taking steps to beef up the industry by offering a 1,217-acre site in Sungkai, Perak, for research and development (R&D) facilities and manufacturing plants for defence products, which have received good response from South Korea, the United States and Europe.
-- BERNAMA
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