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Denel Reaches Significant Milestone On Malaysian Offset ProgrammeYou are here: Media Centre / News & Press
10 May 2019

An innovative collaboration between Denel and the Malaysian defence industry is delivering results that will benefit both countries.

This builds on a contract for Denel to supply turrets and integrated weapon systems for the new generation of armoured vehicles used by the Malaysian defence force. The AV8 programme is the largest export contract in Denel’s history and contains a number of offset arrangements in the fields of technology, education and research.

A major milestone was reached last week at a function hosted by the National Defence University of Malaysia (NDUM). It celebrated the success of the offset programme and the contributions made by Denel and the CSIR to achieve the offset targets.

“This serves as an example of what can be achieved with well-designed offset programmes,” says Danie du Toit, the Group Chief Executive of Denel. “The experience gained can contribute towards similar future projects to benefit the broader industry in South Africa and open doors for other defence and manufacturing companies to gain footholds in the Malaysian and regional markets.”

Denel expects to deliver 100% of its offset obligations of Euro 342m when the project at the NDUM is concluded in 2021. Nine of the 10 intended projects are already underway and the function at the NDUM launched the final initiative.

With this project the CSIR will present courses to participants from the Malaysian armed forces and internship for a senior researcher from the NDUM. The inaugural course in radio frequency and microwave principles in electronic warfare was attended by 34 experts from the Malaysian armed forces and the academic community.

The CSIR will also provide consultancy services to the university for the establishment of a centre of excellence in electronic defence capability in Malaysia.

“The collaboration will deepen the cooperation on technology and research between South Africa and Malaysia. The experience we gained on the AV8 offset programme will benefit Denel in future initiatives and can contribute to the promotion of the broader South African defence and manufacturing industries,” says Du Toit.

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