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Morning Talk: The Push and Pull of Offset Programme In Malaysia

The offset programme is a key element for government projects with high value public procurement, beyond the specific financial threshold.

Our speaker, Ludovic Rousseau mentioned these companies are obligated to develop industries which are high job creation-oriented, which can be related to the industries in which they won contracts (direct offset) or projects identified by the Government as strategic industries (indirect offset).

In addition, he also explained how purchasing countries see offsets as an opportunity to extract technology transfer, as well as employment, investment and export sales opportunities. However, establishing the actual impact of offsets, is not easy. He further elaborated that the subject is shrouded in confidentiality and myth, with anecdote and generalisation pervading even the knowledgeable. 

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