Brexit and MRCA

SHAH ALAM: THE UK voted to leave the European Union on Thursday, leaving the world’s economy in turmoil. And unsurprisingly, in response to the Leave vote, Prime Minister David Cameron announced his resignation saying he no longer want to lead the government following the Brexit.

With his resignation, the UK will soon have a new Prime Minister and Cabinet to navigate the post-EU world.

How is this going to affect the MRCA then? With the pound taking a beating in the exchange market, British kit will be considerably cheaper now – if you buy in Yen or Dollars – but that is to me the only plus-point so far.

Typhoon in the Spotlight

I am making assumptions here but I am guessing a lot of turbulence lies ahead for the Eurofighter Typhoon just as the MRCA programme is in the final lap.

Eurofighter Typhoon in Kuwaiti Air Force colours. Finmeccanica.
Eurofighter Typhoon in Kuwaiti Air Force colours. Finmeccanica.

Although much of the marketing for the Typhoon is done by BAE Systems, the UK government plays a big role though mostly in the background. With Brexit, what is certain, is the uncertainties. It is this uncertainties that may affect the Typhoon campaign.

It must noted that the chemistry between Cameron and DS Najib Razak, is one of the key reasons that Typhoon remained on the top of the MRCA short list.

Will the new guy in Downing Street be as committed as Cameron? At the moment that remained a big question as the new British government has to deal with the fall out of Brexit first.

It is likely though Malaysia will not be getting the same treatment as before.

Dassault Rafale
Dassault Rafale

Furthermore, due to Brexit, the financial guarantees offered by the current administration may well be reviewed or even cancelled. And without this financial lifeline, it is unlikely that the Typhoon offer will go anywhere.

The implications of Brexit remains complex and far-ranging says analysts and it does not only affect British but the whole world as well. This may well be the start of another financial meltdown, though for our sakes, I hoped it will not be the case. If it is, we can forget about MRCA altogether.

== Malaysian Defence

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