Sunday, 07 March 2021


, No 11, Monday 03rd June, 2019

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  • Malaysia drops multipliers and hits OEMs for late “tier two” agreements

    Malaysia has released an English translation of the second edition of its policy and guidelines for industrial collaboration programs (ICPs). The 76-page document contains several notable changes including lower multipliers; penalties for delays in signing project agreements; and the introduction of fees to cover management services. Joint ventures with foreign equity may now trigger obligations for procurements.

  • “Indonesian companies have become agents instead of partners…offset policy is failing”

    A research paper commissioned by the Indonesian National Armed Forced Staff and Command College finds that Indonesian companies have become agents of foreign defence suppliers, not their partners. Offsets have failed to create a local defence industry that can supply the nation’s military needs, the paper notes.

  • DAPA: Audit Board demands punishment for F-35 offset “falsehoods”

    South Korea’s Board of Audit and Inspection (BAI) has accused the Defence Acquisition Program Administration (DAPA) of submitting false reports. The reports concern the technology transfer negotiations for the country’s F-X fighter project and the delivery of a military satellite as an offset requirement. DAPA officials were found to have broken the law. CTO’s report last October revealed that offset negotiators faced jail…

  • BIS annual offset report shows recovery from previous lows – and rising EC offset values

    The 23rd annual report to Congress on the impact of offsets in the defence trade shows that industrial participation involving U.S. defence exporters has risen from historic lows. Compiled by the Bureau of Industry and Security, the report collects data from U.S. exporters that have associated offset arrangements. The major takeaway from the report is that in 2017 offsets involving these exporters rose across a number of metrics, including…

  • Switzerland lowers Air 2030 fighter offset quota to 60 percent

    The Swiss Federal Council has decided to reduce the offset quota for the forthcoming CHF6bn ($5.94bn) Air 2030 fighter aircraft procurement from 100 percent to 60 percent. The procurement will take place at the same time as a CHF2bn ($1.98bn) procurement of ground-based air defence systems.

  • Canadian government “gagged dissent” on offsets for F-35s

    Canada has dropped some of the provisions of its Industrial and Technological Benefits (ITB) policy. The provisions require foreign weapons manufacturers to invest an amount equal to the value of the arms contracts they receive back into the Canadian economy. The move follows a U.S. complaint.


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