The pre-industrial collaboration programme (pre-ICP) agreement between the Technology Depository Agency (TDA) and Thales International Offset will position Malaysia, especially Kedah, as a subcontracting destination for Thales' in-flight entertainment (IFE) screens for global supply.

Finance Minister Lim Guan Eng Said the pre-ICP agreement is one of the major parameters for award consideration where Malaysia was elected as the subcontracting destination, beating India and Thailand.

"The value of the subcontract is estimated to be RM447 million, but the subcontracting programme itself will see more than RM1.2 billion worth of products made in Malaysia by 2022," he said in his speech at the signing ceremony between TDA and Thales International Offset at Celestica Malaysia Sdn Bhd at the Kulim Hi Tech Park today.

At the signing ceremony, TDA was represented by its CEO Zailani Safari while Thales was represented by vice-president Southeast Asia Frederique Miller.

The agreement is a result of a thorough negotiation between TDA and Thales for the subcontracting job of the latter’s IFE screens to be carried out in Malaysia and to be recognised as ICP credit.

Thales, one of the global market leaders in IFE systems, selected Celestica, a Malaysian company based in Kulim, to carry out the complete manufacturing, assembly and final testing of airborne displays.

Lim said the project is expected to achieve 60 percent local content and generate more than RM1 billion ICP credit value (ICV) worth of business opportunities by 2022, while creating about 450 job opportunities annually over the next five years.

Currently, he noted, TDA manages 88 ICP programmes and 441 ICP projects worth RM69.3 billion, adding these programmes and projects have triggered RM28.4 billion worth of ICV.

"Out of the RM28.4 billion, RM7.9 billion ICV has been implemented with TDA actively identifying and negotiating the balance of the ICP programmes to be implemented in Malaysia,” he said.

TDA's core function is to manage, administer and monitor the implementation of ICP to further develop the local industry and the nation's technology capabilities, leveraging on strategic government procurement.

- Bernama