The Malaysian Armed Forces (ATM) are assessing the prototype of a future generation combat armoured car, AV8, before its production commences locally.

Defence Minister Ahmad Zahid Hamidi said the ATM had received the prototype and were conducting tests.

“We will manufacture 257 of the AV8 at a cost of RM7.3 billion. Their construction will benefit 100 local firms,” he told reporters at the Langkawi International Maritime and Aerospace Exhibition (Lima 2013) today.

The AV8, which has eight wheels, was developed using Turkish technology. A factory would be set up in Malaysia to manufacture the combat vehicles and their procurement was expected to be fully completed in 13 years.

On the national defence industry, Ahmad Zahid said the involvement of a bigger number of defence companies at Lima was a benchmark that the objective of the government had been met.

He said the government wanted to see more defence industries created, and their active participation in Lima had opened up many routes to the aerospace, maritime and armoured car manufacturing sectors.

“In the aerospace industry alone, we have generated RM30 billion from MRO (Maintenance, Repair and Overhaul) and handling of assets and aircraft for the defence sector (since 1991),” he said.

As for the maritime industry, he said, the construction of Littoral Combat Ships (LCS) at the Boustead Naval Shipyard (BNS) is set to bring profits to 200 local companies as vendors of BNS.

He said, the involvement of local companies in the defence industry since 1991 had created 50,000 job opportunities. A total of 226 local defence firms took part in Lima 2013 compared to three in 1991.

- Bernama