Contracts at DSA 2018 – Shorts

Deftech Handalan II. GS Cargo 4X4

KUALA LUMPUR: The government signed eight contracts, three MOU and six offset agreements as well 10 Letter of Awards and three Letters of Intents worth some RM18.3 billion for the Armed Forces and Home Ministry agencies at DSA 2018 today. Some RM14.396 billion are for the six offset agreements related to the LCS and AV8 Gempita programs.

I don’t have the cost of the rest as the defence and home ministries did not release a breakdown of costs of the contracts, LOI, LOA and agreements awarded or signed today,

Only two companies have so far revealed the cost of their contracts, Deftech Aviation Sdn Bhd (RM18 million for a three year MRO contract for police Cessna aircraft) and Kongsberg Defence (RM597 million) for the Naval Strike Missile (NSM) for the RMN’s Littoral Combat Ships.

Deftech Handalan. Deftech receives a contract for the provision of spares and support for the truck. The cost of the contract was not announced

From my guesstimation, the actual costs of the contracts for the Defence Ministry only amounted to around RM3 billion, Most of these are MRO and spares and support for all three services. The ministry also awarded the contract for the EDA M109 A5 howitzers to the US Embassy in Kuala Lumpur, no further details, cost and numbers, were revealed.

Nexter 105mm LG1 gun displayed at DSA 2018

Several contracts scheduled for today were left out without any explaination. This includes the contract for the purchase of Nexter 105 LG1 howitzers. ADS Sdn Bhd officials who were at the ceremony were left speechless with the turn of events. Also left out at the ceremony were contracts for Air Asia and Malaysia Airlines to provide transportation for soldiers to and from the peninsula to Sabah and Sarawak. Their representatives who were present at the ceremony were also not given any explaination on why the contracts were not awarded today.

— Malaysian Defence

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About Marhalim Abas 1607 Articles
Shah Alam

5 Comments

  1. Bravo!

    Way to go, showing visitors from all over the world what a competent bunch of officials we have.

  2. well,what to be expected?
    the current govt will not do anything which can turn into bullet for the GE.although there already is.
    “lets hope we win GE and you can see all those contract” as they said,heheh.
    and dont forget budget and money which not be allocated(again).

  3. Actually, things are not as bad as they seem. Granted, there is a long unfulfilled shopping list but there 6 LCS’s and 4 LMS’s on order; 2 newly delivered [albeit delayed] training ships, an underwater surveillance system is on order for Sepanggar, the Lekius and Saktis have received new gear; the standalone Starburst has been replaced with an integrated system; the long delayed Nuri and Hawk upgrade is on; the Condors are being upgraded, M-109s have been signed for and LG1s as well [or will soon be]. Approval has finally been gained for MPAs and MPSSs. Just as important, although most tend to focus on the sexy stuff; focus is being given to progressively improve the MAF’s NCO capability.

    Given the lack of funding, political climate and the level of commitment/focus shown towards defence; things are not all that bad – of course there’s much scope for improvement. Sure, everyone was hoping for ”bigger” news from DSA but deep down; we all knew [largely thanks to Marhalim’s reporting] what to realistically expect in terms of actual contracts.

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