KUALA LUMPUR: Under a Memorandum of Understanding (MOU) with the Ministry of Entrepreneur Development (MED), Malaysia Airlines aims to reduce non-critical parts and components cost by 15 per cent via a Vendor Development Programme (VDP).
VDP is a programme implemented by the government to boost the development of small and medium enterprises.
Signing the MOU on behalf Malaysia Airlines Group and MED secretary -general Datuk Wan Suraya Wan Mohd Radzi, Group chief operations officer, Ahmad Luqman Mohd Azmi as quoted in Bernama said an additional benefit of sourcing locally is that Malaysia Airlines will be able to decrease its exposure to foreign exchange volatility.
The VDP is also expected to lessen turnaround time and help boost operational efficiency.
The MOU, Luqman said will enable them to create a multiplier effect within the domestic economy by developing an eco-system for local vendors to support their businesses.
He added that the VDP also helps to empower local companies by spurring their businesses in Malaysia’s airline industry, which is predominantly serviced by foreign companies.
The VDP will feature five pilot projects within Malaysia Airlines, mainly in sourcing additive manufacturing, carpets, seat upholstery, aircraft cleaning materials and chemicals.