Malaysia: The World Top Arms Importer! Edited

KUALA LUMPUR: Based on the Trends in international arms transfers, 2009 Paul Holtom, Mark Bromley, Pieter D. Wezeman and Siemon D. Wezeman SIPRI Fact Sheet it appears that Malaysia, Singapore and Indonesia, are in an arms race.

The 722 percent figure cited by the publication really sounds alarming doesnt it? But the data must be seen in its full context though. Since we had to procure arms in 10 year cyclical basis, no thanks to the 1997 economic crisis, one would expect such spike in percentage however. But since explaining such matters are the purview of people with more power and getting more money than me, I will leave it to them then.

The statement by SIPRI has been published for a while now but it has not received much publicity so far until Reuters used that data in its report here. I am sure will make a meal out of this.

Online news portal, Malaysiakini also jumped into the bandwagon, but alas their take on their issue is really a poor cut and paste job!

–Malaysian Defence

Posted in Malaysian Defence, budget, commentary, defence Industry | 14 Comments »

Say No to The AV8

The AV8Buster Logo

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

Posted in 1Malaysia, Defence Contract, budget, commentary | 72 Comments »

Its only around RM400 million

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

Posted in 1Malaysia, Amraam, Defence Contract, Stinger, commentary | 21 Comments »

More Reading Materials for the Defence Minister and MINDEF

KUALA LUMPUR: There are two accident reports being prepared by the air force and the navy at the moment. The air force report is on the crash of the fatal PC-7 MKII while the navy’s report is of course due to the fire that destroyed the Sri Inderapura.

I am hoping for the best for both reports but from past experience I am not expecting that much. I just hope that the powers that be will then used the two reports as the basis for a more in-depth investigations into both incidents as done by the UK MOD following the mid-air explosion of a Nimrod over Afghanistan in 2006.

The Nimrod Independent Review was headed by a Queens Council and was made public after it was presented

Posted in 1Malaysia, Kementerian Pertahanan, White Paper, commentary | 2 Comments »

A New Day or Not

KUALA LUMPUR: The death of the two RMAF pilots in last week crash in Langkawi highlighted the top to bottom mentality that continue to prevail over Jalan Padang Tembak. Instead of highlighting our soldiers, airmen and sailors, Kementah, especially its website continue to be a platform for its political masters.

Just look at their website.

So my colleagues in the daily press (see Utusan story) had to disturb the bereaved family members for interviews and even worse, pictures. I remembered doing just that several years back. I know its sad but we simply trying to honour our fallen heroes but the powers that be seemed oblivious to the fact.

Click here for examples from other countries which had realised that while the politicians come and go, its the soldiers, airmen and sailors that are the focal point of the services.

Australia
Singapore
UK

The Malaysian syndrome has been going on for years now as long as I could remember. It happened before I joined the media, it happened during the time I was a full time reporter and I half expect that it will continue into the near future. Of course they could still could include the politicians in the website but hogging the bandwidth is simply sacrilegious. Whatever happened to the 1Malaysia concept of Putting the People First, just another slogan?

I had hoped that with the new administration, Jalan Padang Tembalk will revolutionise its PR since the department now got a new civilian boss, brought in from the outside to bring in new ideas and concepts. Furthermore, the Minister got two PR types working for him and nation’s media behind him. There is no need for him to hog the Kementah bandwith. But it seemed nothing has changed.

–Malaysia Defence

Posted in Kementerian Pertahanan, Malaysian Armed Forces, Malaysian Defence, commentary, utusan malaysia | 4 Comments »

Cost of Arms in the Real World

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

Posted in 1Malaysia, Defence Contract, Kementerian Pertahanan, Lessons, budget, commentary | 2 Comments »

We Do Appreciate Our Warriors

KUALA LUMPUR: Yes, Tuanku. We do appreciate our warriors. But we are wondering whether or not those with the powers that be do appreciate them. Especially those still in the firing line…..

From Bernama

Appreciate Our Warriors, Says Yang Di-pertuan Agong

KUALA LUMPUR, July 30 (Bernama) — Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin Thursday called on all Malaysians in the spirit of 1Malaysia show their appreciation to warriors still living or the widows and next-of-kin of those who have perished.

He said Malaysians owed a great deal these warriors who put their lives on the line to defend the sovereignty of Malaysia.

“Many among them sacrificed their lives on the battlefield to protect the freedom were are enjoying today,” Tuanku Mizan said in his Warriors Day message broadcast on the RTM1 television channel here tonight.

Tuanku Mizan also praised the government for valuing their contributions and always giving priority to the welfare of warriors and their families.

He also called on members of the security forces to follow in these warriors footsteps towards ensuring peace and stability.

“To warriors still living but became disabled and to families who lost their breadwinners in their (warriors’) sacrifices for our beloved nation, I hope they will be able to meet challenges that they may face with full fortitude,” he said.

–Malaysian Defence

Posted in 1Malaysia, Malaysian Armed Forces, commentary | 1 Comment »

Be Really Careful…

KUALA LUMPUR: The story from Bernama below is self-explainatory. But one must look at the proposal very carefully lest the same thing that had occurred before wont be repeated. Do I need to recite the development of the Jalan Ampang TA camp before we rush into similar schemes in the near future?

I doubt the Armed Forces are ready for another round of re-development of its precious real estates under the built and transfer scheme. Most of the past projects turned out to be nothing more than Quick Rich Schemes for those with the right connections. And it is the Armed Forces and its personnel had to bear the consequences….

Malaysian Defence understands that some of the camps in urban areas in the country are no longer strategically located but with the depressing real estate prices during this hard times, one wonder whether its wise to start redevelopment programmes.

Army Camps In City May Be Relocated

IPOH, July 24 (Bernama) -- The defence ministry is planning to relocate a number of city-based army camps to more strategic locations, said Minister Datuk Seri Dr Ahmad Zahid Hamidi.

He said the relocation of the camps was now being studied and would be implemented in the nearest possible time.

“The move is a military strategy and not a political one. It is something we have to think about,” he told reporters after visiting the 2nd Brigade Headquarters here Friday.

He said placing several camps in the city was more suitable during the Emergency era but the location was no longer suitable due to the rapid pace of development and other factors.

He said a new location which provided a more systematic settlement that adhered to the needs of the Armed Forces corps needed to be identified, adding however, that the programme need not incur too much cost on the government.

Ahmad Zahid said mechanisms to reduce the cost incurred by the resettlement had been established, including using existing assets.

He said, an example of such settlements was in Perak where there were camps in Taiping and Lembah Kinta, but none elsewhere.

– Malaysian Defence

Posted in 1Malaysia, Kementerian Pertahanan, Malaysian Armed Forces, Malaysian Defence, budget, commentary | 3 Comments »

Armed Forces Pension Fund to Fund Armed Forces Procurement

KUALA LUMPUR: When writing the header of this entry, I noticed its irony. Hard earned money of soldiers, sailors and airmen will be used to pay for their weapons and other things. Money that is ensconced in their pension fund, Lembaga Tabung Angkatan Tentera (LTAT). That in a nut shell sum up the approach being formulated by the government as it grapples with the need to balance the shrinking economy and the ever increasing cost of national defence.

Lembaga Tabung Angkatan Tentera is the military equivalent of the Employees Provident Fund,

Defence Minister Datuk Ahmad Zahidi revealed the novel financing scheme during a press conference yesterday. Malaysian Defence did not have the time to be at the function, so we have to rely on Bernama, the national press agency. As usual the reporter miss the bigger story, and instead relied on outdated aspiration of Malaysian becoming a defence manufacturing hub as the lead

For further reading.

However, one might missed the most intriguing part of the minister’s PC if one did not scroll down further.

From same story:

“He said a special purpose vehicle (SPV) is to be created by Lembaga Tabung Angkatan Tentera (LTAT) to fulfill procurement needs.

Operating expenditure for the ministry this year was RM10.65 billion and the development expenditure was RM2.35 billion.”

From the three paragraph, we can assume that LTAT will fork out the funds for procurement with the Government issuing Islamic-based financial instrument to pay the fund back. However as LTAT is only allowed to use 30 per cent of its funds for
trust based investment, one wonder how much money it can fork out for arms procurements. Based on a news report, the fund has assets worth RM7.2 billion and annual contribution of RM4.8 billion.

My estimate is that LTAT will only able to fork out some RM2 billion annually for the scheme. So the government still need to pay for other needs if the defence budget goes north.

So how will the contributors feel about funding their own guns from their pension fund? I guess that as long as LTAT pays out the same annual dividend (16 per cent in 2008) no one would complained although one should be cautious about the idea.

For one thing, LTAT is also involved in the defence industry, ie it is one of the shareholders of SME/Airod (M4 et al) and Boustead Heavy Engineering (NGPV project). As it is expected to fund the major arms procurements will it want to be an equity shareholder or the local agent earning huge commissions for future projects?

Further Reading

Furthermore, which interest will LTAT protect the most? Its investment or contributors or both? How will this effect its independence when reviewing procurement projects? Does this mean it will use this dual function to maneuver the ministry to fund projects even though it does not make sense strategically or financially ie the M4 and the NGPV project? Who will be in charge of monitoring all the deals?

A lot of questions of course, which Malaysian Defence intend to pursue vigorously, God Willing.

–Malaysian Defence (more…)

Posted in 1Malaysia, Kementerian Pertahanan, LTAT, Malaysia -Armed Forces, Malaysia -Defence Ministry, budget, commentary | 6 Comments »