SHAH ALAM: The Defence Ministry today publicly announced the signing of 54 contracts – LOAs, contracts and LOIs worth RM4.6 billion at the third of DSA 2022. The release from the minister is below:
1. The signing ceremony of Contract Documents, Memoranda of Understanding (MoU) and the handing over of the Letters of Acceptance (LOA) and Letters of Intent (LOI) by the Ministry of Defence (MINDEF), Malaysia was hosted today by Defence Services Asia (DSA) Exhibition & Conference 2022 and National
Security (NATSEC) Asia 2022.
2. I am proud to report that a total of 54 signings worth RM 4.6 billion for MINDEF was successfully achieved during DSA & NATSEC 2022. The breakdown of these are as follows:
i. 20 LOAs (RM 1.14 billion)
ii. 24 Contracts (RM 3.32 billion)
iii. 7 LOIs (RM 152.79 million)
iv. 3 MoUs
3. In addition, I would like to also highlight on-going procurement of new assets for the Malaysian Armed Forces (MAF). For the Malaysian Army, the assets are Armoured Personal Carrier (APC) to be deployed with MALBATT 850 in Lebanon; 155mm Self-Propelled Howitzers, Logistic Support Bridges for the
Royal Army Engineers; 3-tonne GS Cargo Trucks for mobility and logistics; and Light Anti-Tank Weapon (LAW) Anti Structure for the Special Forces.
4. For the Royal Malaysian Navy (RMN), the new assets that are in the pipeline are 3 Italian-made AW 139 utility helicopters. A second batch of 3 Littoral Mission Ships (LMS) that will be equipped with more sophisticated weapon systems to complement the existing 4 LMS’ is also planned for next year subject
to approval by the Economic Planning Unit (EPU). Additionally, 13 Fast Interceptor Crafts (FIC) are also in the process of procurement.
5. Procurements for the Royal Malaysian Air Force (RMAF) currently underway are 36 new Fighter-Lead-In-Trainer/Light Combat Aircraft (FLIT-LCA) to be acquired over 2 Phases of 18 aircrafts each. This will replace the MiG-29N/UBthat have ceased operations in 2017; the HAWKs that will have been in service
for 32 years by 2026; and the Aermacchi (MB-339CM) that will have also been in service for 22 years by 2030.
6. In addition, plans are in place to procure 3 long-range air defence radars(LORAD); medium-range air defence radar (MERAD); Unmanned Aerial Surveillance (UAS); Medium Altitude Long Endurance Unmanned Aerial Surveillance (MALE-UAS) and Maritime Patrol Aircrafts (MPA).
7. Under the Maritime Security Initiative (MSI), 3 CN235-220M aircrafts are currently in the process of being upgraded to fulfil the role of Maritime Surveillance Aircrafts (MSA) that will be capable of conducting Intelligence, Surveillance and Reconnaissance (ISR) duties.
8. Furthermore, as requested by the end-users (RMAF) themselves using the Government Operate, Company Own and Maintain (GOCOM) method, we are currently leasing 4 AW139 helicopters as a short-term measure to address the NURIs that have been decommissioned. Apart from GOCOM, plans are already in place to procure 24 new helicopters to address the decommissioned NURIs from 2026 onwards with 12 helicopters to be acquired in Phase 1 (13th RMK from 2026-2030), and 12 more helicopters to be acquired in Phase 2 (14th
RMK from 2031-2035).
9. I would like to emphasise that despite the economic impact of the pandemic; and working within the budget allocated to MINDEF and MAF, both the Ministry and Military are committed, working hand-in-hand, to ensure our defence and security readiness remains at an optimum level.
10. The success of DSA & NATSEC 2022 over the last 3 days also highlights the strong partnership that exists between MINDEF, MAF and the defence industry as symbolised by today’s MOU & Contract signing ceremony.
The Home Ministry also held a contract signing ceremony at DSA 2022 today with eight contract signed worth RM2.6 billion. The contracts are for the police, MMEA and the Immigration Department though as the Defence Ministry no details were announced. The MMEA contract worth RM125 million is the the upgrading of the coastal surveillance radar system. It did not name the company which got the contract.
It is likely most of the LOA, contracts and LOI mentioned above are the ones already covered in Malaysian Defence. Of course, if I was there physically, I would have taken the time to find the full details of the LOAs, contract and especially the LOIs. Based on the rest of the statements regarding LMS Batch 2, FLIT-LCA, MPA and UAS, as mentioned previously, they are likely to be green lighted once a new government is in place.
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