Malaysia could become a centre for the development of the shipbuilding industry and defence equipment, says the executive chairman of PSC-Naval Dockyard Sdn Bhd (PSC-NDSB), Tan Sri Amin Shah Omar Shah. But in order to make that a reality, the government would have to offer many more incentives to foreign investors to transfer their industry technologies, particularly in the building of modern warships, to Malaysia.

These views were expressed at a ceremony for naming of a patrol vessel "Kedah" at the Royal Malaysian Navy base. Kedah is the first among six vessels to be built under a contract signed in September 1998 between the Malaysian government and PSC-NDSB. Under the contract, first two vessels were to be built jointly by PSC-NDSB with the German Naval Group consortium at the Blohm & Voss dockyard in Hamburg (Germany). The last four vessels would be built at PSC-NDSB facilities.

PSC-NDSB believes that foreign shipbuilding and defence equipment companies would be more willing to share their technologies if they are attracted to invest in Malaysia and build their factory and production facilities there. Strong incentives could bring more foreign investors and original equipment manufacturers to the country and consequently develop Malaysia as an industry shipbuilding centre.