The Government of Malaysia targets to increase the percentage of local content by at least 45 per cent from 20 per cent in several components for the rail industry by 2030. The target will be met through the Rail Industry Development Programme (RIDP), which is part of the Strategic Industries and High Performance SME Improvement Programme (Prestige).
Local industry players will be listed based on their respective clusters of expertise, and the opportunity to share technology with original equipment manufacturers (OEMs) will be provided through this initiative. The RIDP targets three strategic goals of expanding the number of high-growth companies in the rail industry, raising the competitiveness and efficiency of SMEs in the rail industry as well as expanding the presence of local SMEs in the domestic and international rail supply chain. Selected SMEs will participate in capacity-building projects and will qualify for financial aid of up to RM500 thousand.
Eight SMEs have been chosen to participate in the RIDP. The companies chosen for the programme will be engaged in the production of railway carriage internal parts, such as fibreglass panels, doors, and gangways, as well as railway carriage repairs, rail systems, and brake systems.