Archive for the ‘Defence Contract’ Category
Friday, April 30th, 2010 |

The AV8Buster Logo
KUALA LUMPUR: It is plain obvious isnt it? I am against the AV8, the national 8X8 Armoured Combat Vehicle project.
Why? Its not that there are cheaper solutions, which there are of course. The main reason? Its the money of course, or the lack of it.
There are other valid reasons for going against the AV8 project. The past failures of national interest programmes was to first things that come to mind.
The latest failure is the Aludra UAV project which had not benefited the armed forces at all in terms of capability and capacity. It is such failure that Mindef do not even have the stomach to sign a production contract nor the instinct to kill it off for good measure.
As usual the thing will drag on for a few years more before it will die natural death, leaving the armed forces so behind the technology curve when it comes to UAV even when other nations in the region are contemplating UCAVs!
Furthermore, the Army, as we all know, has other numerous project which are as important as the 8X8 but the lack of funds has caused these projects to be shelved.
Of course we could argue until the moon turned blue which projects are more important and necessary to the Army but one cannot deny the fact that we cannot afford the AV8 project as it stands now.
I would even argue we cannot even afford to purchase 200++ 8X8 ACV off-the shelf now as it would also cost us at least RM3 billion to get the whole lot with another RM2 billion thrown in to maintain them for the next 20 years or so.
Yes, the Menhan had said that the project may or may not cost RM8 billion but certainly we dont have the luxury to spend even half of that amount. And we are supposed to spend RM1 billion annually to develop the ACV8?
Yes the unit price could go much lower if we replace the Sibmas and Condor on one to one basis. But how do we know whether the unit price will go down even if we add another 200 vehicles to the original order?
So what next? Do we really need to replace the Condors and Sibmas? Of course we do and at the same time we must also helped our defence industry. How are we going to do it then? My solution is for us to embark an upgrade programme for the KIFV fleet bought for the Bosnian mission to the Adnan ACV standard. Done by Deftech in Pekan of course.
Since the UN paid for the KIFV, we already save almost RM1 billion in procurement costs and perhaps we need to spent only RM1 billion to upgrade these Korean imports and another RM1 billion to keep them working for at least another 15 years. I know the estimates above could be wrong but I believe this is a far fairer and cheaper solution to our needs considering our defence budget and ambitions.
Is there a way to keep the AV8 project and the other projects in the Armed Forces wish list? Of course there is. More money of course. Show me money!
– Malaysian Defence
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Posted in 1Malaysia, Defence Contract, budget, commentary | 72 Comments »
Friday, November 13th, 2009 |
KUALA LUMPUR: What costs only RM400 million?. One hundred rounds of the latest version of the Amraams together with parts, spares and associated logistical equipment. Since money for the RMK10 is tight, I believe the best solution for the Armed Forces at the moment is to purchase war stocks and since we had only purchased 20 Amraams before, now its the best time to stock up on these missiles. We should also reserved another RM600 million or so to purchase additional Sidewinders and Harpoons at the same time. As for the Stingers and Avenger combo, maybe we should be looking at smaller numbers, however.
Further reading.
Chile � AIM-120C-7 AMRAAM Missiles
WASHINGTON, November 12, 2009 � The Defense Security Cooperation Agency notified Congress Nov. 10 of a possible Foreign Military Sale to Chile of 100 AIM-120C-7 Advanced Medium-Range Air-to-Air Missiles and associated parts, equipment and logistical support worth approximately $145 million.
Chile � AVENGER Fire Units/STINGER Missiles
WASHINGTON, November 12, 2009 � The Defense Security Cooperation Agency notified Congress Nov. 10 of a possible Foreign Military Sale to Chile of 36 AVENGER Fire Units, 378 STINGER-Reprogrammable Micro-Processor (RMP) Block 1 Anti-Aircraft missiles, 12 STINGER Block 1 Buy-to-Fly missiles and associated parts, equipment and logistical support worth approximately $455 million.

Amraam

Avenger unit firing a Stinger missile
–Malaysian Defence
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Posted in 1Malaysia, Amraam, Defence Contract, Stinger, commentary | 21 Comments »
Tuesday, August 25th, 2009 |
KUALA LUMPUR: Sorry for the late update but as mentioned above its Better Late Than Never! The SLEP for the Kasturi which was first announced publicly at Lima 2007 has finally been given the go ahead. It was supposed to start last year but as the RMN chief stated in his New Year Message (2009) he was dismayed by the decision to defer the project.
The project is contracted for almost a billion ringgit for two ships, which are already more than 25 years old. I guess it will be faster to repair these tired ships rather than try to spend the time to persuade the powers that be that we need new ships and a lot of them ASAP!
I am not being cynical but I hazard to guess the contract signing will be done at Lima 2009 next November and with the “signing” the business done at the show has gone up by almost one billion.
As I mentioned before the SLEP should have been done years ago to validate the systems meant for the Kedah class. But we chose the long and unprofitable route….
Boustead Unit Gets RM 703.823 Million Contract From Defence Ministry
KUALA LUMPUR, Aug 12 (Bernama) — Boustead Holdings Bhd has been awarded a contract worth RM703.823 million from the Defence Ministry to undertake the Service Life Extension Programme of Kasturi Class Corvettes.
– Malaysian Defence
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Posted in 1Malaysia, Bouestead, Defence Contract, Malaysia -RMN, Malaysian Defence | 10 Comments »
Monday, August 17th, 2009 |
KUALA LUMPUR: Listed below is the procurement tenders issued from Aug 1 to Aug 17 by the Ministry of Defence. Further reading.
Tenders Advertised on 14 Aug,2009
1) KP(PERO 2)A/T 315/2009 Closing Date 08.09.09 Cost of Tender Documents: 50.00
Pembekalan dan Penghantaran Alatganti Serta Perkhidmatan Senggaraan Bridge Shiphandling Simulator Untuk Tentera Laut DiRaja Malaysia (Supply and Delivery of Spare Parts together with Maintenance Services for RMN Bridge Handling Simulator)
(Kod Bidang/Scope Code : 190203 dan 220106)
Masih Diiklankan/Still advertised)
2. KP(PERO 2)D/T 292/2009 Closing Date: 08.09.09 Tender Documents: RM50.00
Pembekalan dan Penghantaran Alatganti Peralatan Menyelam Untuk Tentera Laut DiRaja Malaysia
(Supply and Delivery Spares of Diving Equipment for the Royal Malaysian Navy)
(Kod Bidang/Scope Code 190300)
Masih Diiklankan
3. KP(PERO 2)D/T 286/2009 Closing Date: 08.09.09 Tender Douments RM50.00
Membekal, Menghantar, menguji dan Mentauliah Fire Fighting Protective Clothing Bagi Kapal-Kapal dan Pasukan Bomba Tentera Laut DiRaja Malaysia (TLDM)
(Supply, delivery, testing and commissioning of Fire Fighting Protective Clothing for Vessels and Fire Department of the Royal Malaysian Navy)
(Kod Bidang/Scope Code: 030200)
Tenders issued on Aug 14, 2009
1) X0201120501090015 (KP(PERO 6)B/T 276/2009) Closing Date: 10.09.09 (Khamis) jam 12.00 tengah hari
Cost of Tender Documents: Via ePerolehan
Perkhidmatan Membaiki But/Kasut Kawad Di MSS Kuching *Boot/Drill Shoes Repair Services at MSS Kuching (Kod Bidang/Source Code: 221405) Masih Diiklankan
Syarat Khas Bil 1/Special Requirements
1. Petender-petender diwajibkan menghadiri taklimat tender seperti berikut: (All potential tenderer must attend the tender briefing at the venue and dates below)
Tempat : MSS Kuching,
Kem Penrissen,
93677 Kuching, Sarawak
Tarikh : 20 Ogos 2009 (Khamis)
Masa : 02.30 petang
2. X0201120501090016 (KP(PERO 4)C/T 316/2009) Closing Date: 10.09.09 (Khamis) jam 12.00 tengah hari
Cost of Documents: Secara ePerolahan
Membekal dan Menghnatar Rangsum Penerbangan TUDM Kuching (supply and delivery of flight rations for RMAF Kuching)
(Kod Bidang/Source Code : 080501 dan 080400) Masih Diiklankan
Syarat Khas Bil 2: (Special Requirements)
1. Petender-petender diwajibkan menghadiri taklimat tender seperti berikut: (All potential tenderer must attend the special briefing at the venue listed below.
Tempat : Pegawai Memerintah,
Pangkalan TUDM Kuching,
92300 Kuching, Sarawak
Tarikh : 20 Ogos 2009 (Khamis)
Masa : 10.00 pagi
Tender advertised on 11 Aug, 2009
1) X0201120501090014 (KP(PERO 6)C/T 238/2009) Closing Date: 08.09.09 (Selasa) jam 12.00 tengah hari
Cost of Tender: Secara ePerolehan (via ePerolehan)
Perkhidmatan Dobi dan Jahitan Di Institut Latihan Tentera Udara (ILTU) Ipoh Perak (Laundry and Tailoring Services at the Institut Latihan Tentera Udara, Ipoh Perak.
(Kod Bidang/ Source Code : 221708 dan 220900) Masih Diiklankan
Syarat Khas Bil 1/ Special Requirements:
1. Petender-petender diwajibkan menghadiri taklimat tender seperti berikut/All potential tenderer must attend the special briefing at the venue listed below.
Tempat : Bilik Bunga Tanjung
Bahagian Perolehan
Tingkat 4, Wisma Pertahanan,
Jalan Padang Tembak,
50634 Kuala Lumpur
Tarikh : 14 Ogos 2009 (Jumaat)
Masa : 09.30pagi
– Malaysian Defence
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Posted in 1Malaysia, Defence Contract, Kementerian Pertahanan, Malaysian Armed Forces | 1 Comment »
Monday, August 10th, 2009 |
KUALA LUMPUR: Listed below are the cost of arms in the real world. Yes, there are other sellers, which offer cheaper prices but we do not have comparative figures for check and balance. The list below are the notification made to the US Congress by the Defence Security Cooperation Agency of proposed arms sale. Although the notifications have been made public, this does not mean that the proposed sale will be completed. Do we have the funds to even match this proposals?
Brazil proposed Super Hornet purchase
* Today the Defense Security Cooperation Agency (DSCA) notified Congress of a possible Foreign Military Sale to the Government of Brazil of 28 F/A-18E Super Hornet Aircraft, eight F/A-18F Super Hornet Aircraft, 72 F414-GE-400 installed engines, a host of spare parts and munitions at an estimated value of $7.0 billion.
The Government of Brazil has requested proposals from several foreign suppliers, including the United States, to provide the next generation fighter for the Brazilian Air Force. In this “FX-2” competition, the Government of Brazil has yet to select the United States Navy-Boeing proposal. This notification is being made in advance of receipt of a letter of request so that, in the event that the US Navy-Boeing proposal is selected, the United States might move as quickly as possible to implement the sale. If the Government of Brazil selects the U.S. Navy-Boeing proposal, the Government of Brazil will request a possible sale of 28 F/A-18E Super Hornet Aircraft, eight F/A-18F Super Hornet Aircraft, 72 F414-GE-400 installed engines, four F414-GE-400 spare engines, 36 AN/APG-79 Radar Systems, 36 M61A2 20mm Gun Systems, 36 AN/ALR-67(V) three Radar Warning Receivers, 144 LAU-127 Launchers, 44 Joint Helmet Mounted Cueing Systems (JHMCS), 28 AIM-120C-7 Advanced Medium Range Air-to-Air Missiles (AMRAAM), 28 AIM-9M SIDEWINDER Missiles, 60 GBU-31/32 Joint Direct Attack Munitions (JDAM), 36 AGM-154 Joint Standoff Weapons (JSOW), 10 AGM-88B HARM Missiles, and 36 AN/ASQ-228 (V2) Advanced Targeting Forward-Looking Infrared (ATFLIR) Pods. Also included are 36 AN/ALQ-214 Radio Frequency Countermeasures. 40 AN/ALE-47 Electronic Warfare Countermeasures Systems, 112 AN/ALE-50 Towed Decoys, Joint Mission Planning System, support equipment, spare and repair parts, personnel training and training equipment, ferry and tanker support, flight test, software support, publications and technical documents, U.S. Government and contractor engineering, technical and logistics support services, and other related elements of logistics and program support.
*Republic of Korea – AIM-9X SIDEWINDER Missiles
WASHINGTON, Aug. 6, 2009 – Today the Defense Security Cooperation Agency notified Congress of a possible foreign military sale to the Government of the Republic of Korea of 55 All-Up-Round AIM-9X SIDEWINDER Missiles, associated equipment, and logistical support for an estimated cost of $41 million.
Thailand – UH-60L Black Hawk Helicopters
WASHINGTON, Aug. 6, 2009 – Today the Defense Security Cooperation Agency notified Congress of a possible foreign military sale to the Government of Thailand of three Black Hawk helicopters and associated equipment and logistic support for an estimated cost of $150 million.
The Government of Thailand has requested a possible sale of three UH-60L Black Hawk helicopters with six T-700-GE-701D engines with C controls, AN/APX 100 (V) Identification Friend or Foe Mark XII Transponder Set or suitable substitute/commercial equivalent, warranty, internal hoist kits, spare and repair parts, tools and support equipment, publications and technical data, personnel training and training equipment, U.S. Government and contractor engineering and technical support services and other related elements of logistic support.
Bahrain – AIM-120C-7 AMRAAM Missiles
WASHINGTON, July 28, 2009 – On July 27, the Defense Security Cooperation Agency notified Congress of a possible foreign military sale to the Government of Bahrain of 25 AIM-120C-7 Advanced Medium Range Air-to-Air Missiles (AMRAAM) and associated equipment, parts and services at an estimated cost of $74 million.
Kuwait – KC-130J Multi-mission Aircraft
WASHINGTON, July 20, 2009 – On July 15, the Defense Security Cooperation Agency notified Congress of a possible foreign military sale to the Government of Kuwait of eight KC-130J Multi-mission Cargo Refueling Aircraft and associated equipment, parts and support for an estimated cost of $1.8 billion.
The Government of Kuwait has requested a possible sale of 8 KC-130J Multi-mission Cargo Refueling Aircraft with 32 AE-2100D3 Turbo propeller engines, 8 spare AE-2100D3 Turbo propeller engines, 4 AN/ALR-56M Radar Warning Receivers, 4 AN/AAR-47 Missile Approach Warning Systems, 4 AN/ALE-47 Countermeasures Dispenser Sets, 20 AN/ARC-210 (RT-1851A(U)) Very High Frequency/Ultra High Frequency HAVEQUICK/Single Channel Ground and Airborne Radio System,
–Malaysian Defence
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Posted in 1Malaysia, Defence Contract, Kementerian Pertahanan, Lessons, budget, commentary | 2 Comments »
Tuesday, February 10th, 2009 |
KUALA LUMPUR: Based on the story below my earlier guesstimate that the A400M, if we continue with the procurement, will most likely be inducted into RMAF by 2020, may well be correct.
Malaysian Defence believes its time to cancel the deal and start looking for other options. We dont have enough money to wait this long.
–Malaysian Defence
Airbus A400M Facing 3-Year Delay: Report
By AGENCE FRANCE-PRESSE
PARIS – Airbus’s flagship A400M military transport plane is facing a three-year delay, Le Figaro reported Feb. 10, adding an estimated five billion euros to its price tag.
The French daily cited confidential documents which said the plane, originally due for delivery this year, would not be available before the end of 2012.
Related Topics
“The test flight is planned for the beginning of 2010 and the first delivery at the end of 2012,” the report said, quoting a confidential note from Airbus Military to OCCAR, the European organization for military cooperation that represents seven countries.
Deliveries had originally been scheduled to begin in 2009, but it is only in 2014 that Airbus’ military subsidiary will be able to deliver significant numbers of the aircraft to clients, the newspaper reported.
The delay will cost Airbus dearly, with Le Figaro saying experts cited figures in the area of five billion euros ($6.4 billion), about the same as delays to the A380 superjumbo have cost the company.
The Financial Times Deutschland reported last month the A400M is overweight and cannot carry its designed payload, necessitating modifications.
The A400M is the most ambitious European military procurement program.
Begun in 2003, a total of 192 of the aircraft have been ordered so far for more than 20 billion euros.
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Posted in Defence Contract, Malaysia - RMAF, Malaysian Defence | 10 Comments »
Wednesday, December 24th, 2008 |
KUALA LUMPUR: Brazil on Tuesday (Dec 23) signed a defence pact with France which analyst estimates to be around 6 to 8 billion Euros which include the purchase and local manufacture of the EC-725 Cougar and four SSKs, most probably a more advance Scorpene.
The cost of the Cougars was not released but Reuters cited analysts as saying the contract is worth at least 1.9 billion Euros, which I translated into RM182 million for each helicopter. If this is correct, the amount is about RM30 million more expensive than the price quoted for our Nuri Replacement Programme although our numbers are far more smaller than the Brazilian buy.
Will it be the same price for us if we delayed the procurement of the Cougar within the next two years? It may be the case. The Brazilian Cougars will be manufactured by Eurocopter in the South American country with its local helo builder, Helibras, which may account for the higher unit price.
It seems that the Cougar had turned the corner following our initial intention to purchase the medium-lift helicopter. Although Brazil was reported late last month to be ready to procure the Mi-17s from Russia, the latest events seemed to vindicate MINDEF decision to procure the Cougar for the NRP although the tender process could have been done in a more judicious way so as not to attract controversies.
From Eurocopter website.
“Following the EU-Brazil summit, President Nicolas Sarkozy of France and President Luiz Inácio Lula da Silva of Brazil officially announced the contract for 50 EC725 helicopters which has been signed by the Brazilian government and a consortium formed by Eurocopter and Helibras. The helicopters will be operated by Brazil’s armed forces and the first deliveries are scheduled for 2010. This is the largest contract ever signed in South America and will provide Brazil with a fleet that is capable of performing an extremely wide range of missions. The contract will also allow Eurocopter to continue its expansion in South America.
–Malaysian Defence
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Saturday, December 13th, 2008 |

The Jernas on Show during the Merdeka Parade
KUALA LUMPUR: In conversations with some people over the last week, it appears that most of arms procurement in the last five years have done nothing to increase our armed forces capabilities. Most of the systems purchased have serious deficiency issues mostly related to integration issues (western and eastern system incompatibility) and lack of spares and support equipment.
Most of these have been alluded to by comments by our regular visitors and Malaysian Defence would like to confirm that most of it are true. As it would be impossible for Malaysian Defence to get an official confirmation on this important issue, please read our previous postings and visitor comments for whole picture.
Some of the arms will be officially inducted into service, although their operational capabilities will not be as advertised previously. How bad is the problem? Well it depend on the platform itself, for example, for one particular air defence system it will not be declared operational soon due to several issues. One of the major issues are the lack of trained personnel and soon, the lack of spares and support equipment for which the supplier will make a killing if they want to put the system into operational service. And it will be as expensive as the cost of purchasing the damn system in the first place. Even the warranty period have ended before the system have been declared ready and capable for operational service
Integrating Western and Eastern avionics have been vexing the armed forces since the decision to please both sides were introduced in the 90s by the previous administration. It remained a major problem and has become even worse with the army experiencing the same difficulties as with the air force.
The lack of spares and support equipment is also another worrying trend. Keen to procure arms, the armed forces had sacrifice the funds to pay for spares, support and maintenance in order for the treasury to approve the purchase. This lack of foresight is a clear example on how chaotic and misguided is our defence policy. It is also a clear indication that the life-cycle cost of equipment while in service were not factored in the procurement decision making or even worse, deliberately left out to ensure that the initial procurement cost seemed reasonable especially with the outrageous mark-ups for the local agent.
Thats one of the reason we have purchased 20-odd missiles when other countries purchased them by the dozens. The conundrum is expected to remain into the near future as funds had dried up.
In the meantime, we can only pray…
–Malaysian Defence
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Posted in Defence Contract, Lessons, Malaysia -Armed Forces | 4 Comments »
Monday, November 12th, 2007 |
KUALA LUMPUR: Thanks to reader N. Mohamed, we now know that in 2005, MINDEF purchased 20 Amraams from the US. The matter was reported to the UN Conventional Arms Register.
What is the UN Conventional Arms Register? According to its website:
On 6 December 1991, the General Assembly adopted resolution 46/36 L entitled “Transparency in armaments”, which requested the Secretary-General to establish and maintain at United Nations Headquarters in New York a universal and non-discriminatory Register of Conventional Arms, to include data on international arms transfers as well as information provided by Member States on military holdings, procurement through national production and relevant policies.
The Register comprises seven categories of major conventional arms, namely, battle tanks, armored combat vehicles, large-calibre artillery systems, combat aircraft, attack helicopters, warships (including submarines) as well as missiles and missile-launchers. It has been in operation with effect from calendar year 1992. Thus far, a total of 170 Member States have reported to the Register one or more times. The Register captures the great bulk of the global arms trade in the categories of conventional weapons covered by it.
So now we know. However, since the purchase was made in 2005, there is still a chance that the missiles have not been delivered, so since Lima is coming along, it will be another thing that I will have to remind myself to ask the Few Good Men!
If you want to look for yourself you can go to the website and read up about our register and those of our neighbours. I have taken the liberty to download and listed below is the arms that we have registered so far.
There is no mention of the Kedah class and the combat boats, while the PT91 and Flanker should be in the register next year. Also note there were five years (2006,2004,2001,1998 and 1992) that Malaysia did not report any major arms purchases. 1998 was academic but the rest?). Also for the 1999/2000, we registered the same purchases.
There is also no mention of the missiles and bombs purchased for the Hornets and Fulcrums in the register, which led me to wonder why they listed the AMRAAMS?
Those in the italics are my comments. Sorry it may look convoluted as I have no idea to convert it into Excel! Thanks again N.Mohamed!
Malaysian Register in the UN Conventional Arms Register’
2005
United States of America
20 units Advance Medium Range Air to Air Missile (AMRAAM) AIM120 C-5
Brazil 1,296 units Astros SS-30HE Rockets
2003
Pakistan 160 units 72 Missiles Short Range Surface to Air Missile (ANZA MK11)
450 units Anti Tank Guided Missile (Bakhtar Shikan)
Large calibre artillery system South Africa G5/155mm Mk 111 Towed Howitzer
Armoured combat vehicles Turkey 211 (Adnans) - Infantry Fighting Vehicle-116
Anti Armour Vehicle-8 ; Armoured Mortar Carrier-10; Armoured Command Vehicle-24
Armoured Ambulance Vehicle-25; Armoured Ambulance Vehicle-13, Armoured Vehicle Signal-13; Armoured Vehicle Filter-7 (fitter?) and Armoured Vehicle Recovery-8
2002
Large calibre artillery systems South Africa 6 /155mm 45 calibre Gun (Denel G5)
Warships France 2 Submarine (Prime Minister’s Class)
Missiles and missile launchers UK 9 Launchers/72 Missiles (Jernas) Air Defence System
Russia 40 Launchers /382 Missiles Air Defence System (Igla manpads?)
France 30 Torpedo (the report mentioned Italy is the originator, so its most probably Whitehead torpedoes for the submarines)
1999/2000
Warships 2 Italy Corvette (the last two of Laksamana class)
2 UK Frigate (Lekiu and Jebat)
Missiles and missile launchers 12 Otomat missiles Italy ( Laksamana class)
8 Aspide Italy (Laksamana class)
16 Exocet (MM40? Lekiu class?)
32 Seawolf (Lekiu class)
All fitted on board (ships?)
1997
Combat aircraft United States of America 8 FA/18 D Hornets Procurement through contract
Warships Italy 2 Missile Corvette Laksamana Class Procurement through contract
1996
Large calibre artillery systems Switzerland 8 35 mm Artillery Gun Procurement through contract
VII. Missiles and missile launchers France 20 Exocet MM40 Block 2 Missile Procurement through contract
1995
Armoured combat vehicles Republic of Korea 47 Korean Infantry Fighting Vehicles
IV.Combat aircraft Russian Federation 18 units MIG 20 Aircraft Series 20/39 UB (? Probably a typo
United Kingdom of Great Britain and Northern Ireland 5 units HAWK Series 100 – 200
VI.Warships United States of America 1 unit Landing ship tank
1994
Armoured combat vehicles Republic of Korea 22 Korean Infantry Fighting Vehicles
IV.Combat aircraft United Kingdom of Great Britain and Northern Ireland
23 units HAWK Aircraft Series 100 200
1993.
II.Armoured combat vehicles Republic of Korea 42 Korean Infantry Fighting Vehicles
III.Large calibre artillery systems United Kingdom of Great Britain and Northern Ireland
3 units 155 mm Artillery Guns.
--MalaysianDefence
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Posted in Defence Contract, Malaysian Defence | 5 Comments »