AN ENDURING PARTNERSHIP
For more than 50 years, BAE Systems has been a staunch partner in Malaysia’s development across a broad spectrum of fields, from aerospace to cybersecurity and education. Here, BAE Systems managing director (Southeast Asia) Natasha Pheiffer looks back at
Q: What is BAE’s business strategy for Malaysia and the region?
A: We are well-known for the range of defence products and services that we have in service with Malaysia’s armed forces, as well as our capabilities in cyber defence which we have built here and are now using to support the nation.
We have so much to be proud of in the partnering relationship we have shared over so many years.
For a long time, we have been involved in industrial partnerships in different areas, such as air, land, and sea systems and support. We made it our strategy back in the 1980s to proactively pursue such partnerships. We are always looking to improve our performance in this area, although I’m pleased to report that we have succeeded in key areas through sharing skills, technologies and processes with likeminded Malaysian companies keen to develop a sovereign capability and deliver long-term value to the Malaysian economy. This continues to be our approach and we are building on solid foundations.
Malaysia’s Air Force flies our aircraft; the Malaysian Navy sails our frigates; the Malaysian Army drives our vehicles and the Malaysian government uses our cyber capabilities. We, therefore, support Malaysia’s national priorities from a range of different perspectives.
BAE Systems believes in longterm and sustainable investments. For instance, back in the 1990s, we formed a strategic alliance with a local composites company, which today is the only Malaysian provider of certified wing parts for Airbus.
Through technology and skills sharing, we were able to lead them on a journey that took the business into the global supply market. Commercial viability is very important and we help Malaysian companies compete against competitors from other countries. So, besides technology and capability development, increasing competitiveness is also a crucial aspect. Quality and delivery are, indeed, the cornerstones of our operations.
I cannot cover strategy without mentioning more about our cybersecurity aspirations in Malaysia, because this nation is at the forefront of our cybersecurity operations in Asean.
The operational synergies related to security between the UK and Malaysia are significant. That fact, among others, enables us to invest significantly and confidently.
In another of our operational centres, in Kuala Lumpur, we currently employ up to 470 people in the delivery of cybersecurity services. The plan is for that number to increase to more than 500.
Malaysia is the global delivery hub for BAE Systems supporting cyber services for the financial sector and the job opportunities we provide are directed towards local talent rather than foreign consultants.
I’m delighted to state that the overwhelming majority of BAE Systems employees in Malaysia are, in fact, Malaysians.
The availability of skilled people is one of the main reasons we have chosen Kuala Lumpur as our regional hub. We invest in skills development and believe wholly in knowledge transfer.
Q: So you view cyber as a strategic priority across Asean? A: Definitely. It is a global strategic priority. BAE Systems has invested in this sector for more than 10 years. We have acquired several companies in order to expand into the market and provide integrated capabilities for governments and promotional entities such as banks and telecom companies. Defending valuable data and information is a must for any government or organisation. As I’ve already mentioned, we’ve got a pretty impressive track record in providing defence systems for the protection of a nation’s physical assets. Today, more than ever before, information is one of the world’s most vital assets.
Q: How can the defence industry contribute to Malaysia’s objective of moving from a labourintensive economy to a knowledge-based economy? A: Investment in defence and security brings substantial educational and skills development as well as access to cutting-edge technology.
Our business is at the forefront of the Industry 4.0 revolution, embracing technologies such as robotics and additive manufacturing in production and using our expertise as an integrator of complex systems to bring together the Internet of Things.
Malaysia is well placed in terms of human capital to take advantage of all these areas. Over time we have managed a number of school outreach programmes, because it all starts in the classroom, with children getting excited about engineering, maths, models, and robots. We spread this programme to almost every corner of Peninsular and Eastern Malaysia. These areas are equally important to us.