KUALA LUMPUR, April 10 – Prasarana Malaysia Bhd said today it is targeting to reduce reliance on foreign suppliers for domestic railway projects by 20 per cent over the next five years.
The Edge reported that the new plans are to encourage more local content in railway projects include the requirement for all railway projects to have at least 30 per cent of its input sourced domestically.
Foreign input reportedly accounts for about 80 per cent of its operations and maintenance contracts now.
“We rely a lot on foreign players as we don’t yet have a developed railway industry here to supply our own parts,” Prasarana president and chief executive officer Masnizam Hisham was quoted saying.
“The local players right now are mostly involved in the services segment, but we are also looking for players that are developing products.”
This compulsory requirement applies to all railway projects, including the Light Rail Transit (LRT), Mass Rapid Transit (MRT), High Speed Rail (HSR) or the East Coast Rail Link (ECRL), Masnizam said.
Masnizam spoke to the media today after the signing of a landmark collaboration agreement between Prasarana and local railway technology players LCE Resources Sdn Bhd and Amantronic Sdn Bhd, marking a shift in the local industry towards the involvement of more local players.
Under the agreement, Prasarana has reportedly granted Amantronic the authority to promote and market the onboard rail lubrication system which was developed by Rapid Rail.
Meanwhile, LCE will be involved in the replacement of the platform screen door system at the five underground LRT stations, from Ampang Park to Masjid Jamek.
Prasarana had previously initiated a life extension programme and engaged LCE to localise the development of the system in 2015.