Defence Ministry Contracts At DSA 2022

Cendana Auto SF-21X Special Operations Vehicle.

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.

TAI Anka UAS displayed at DSA 2022. EL?SC

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.

AMP Corporation mobile radars in service with MMEA under the SWASLA programme. The company also provide maintenance for MMEA coastal radars. The mobile radars are supposed to be used as a gap filler whenever the permenant radar stations goes down or undergo maintenance.

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.

— Malaysian Defence

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Shah Alam

17 Comments

  1. So they are basically saying, “If you want this contract done, vote for us”. The usual letdown. Politicking is more important than national defence for the gomen people.

  2. from a glance

    MERAD has morphed from a medium range air defence system, into a medium range air defence radar.

    NURI replacement (RMAF) for 24 helicopters. First 12 in RMK13 and another 12 in RMK14. If this is the case, i would really suggest that RMAF just delay all of them to RMK14 instead. And wait for the winners of US Army FVL program, which the downselect is planned to happen this year. No mention yet about PUTD needs for the nuri replacement.

  3. Maybe the new government will be formed after July :p

    Based on my tiny source the general election will be held on July or maybe a few month after that.

  4. So everything is going well I presume? Wondering how many medium range radars we are going to get in addition to the 3 new radars (plus 1 radar donated by Uncle Sam). Wished we could know more details of the contract signed.

    So we are replacing the Nuri’s with 24 helos. Can we really afford that? Though if it is a civilian spec sure we can I guess.

  5. Allow me to give my comments:
    1&2. Important are the LOA & contracts signed where there will be fulfilled. Lesser are the LOIs where intent is there but no money for it.
    3. The UNFIL APCs surely is the Nurol Ejder Yalcin as reported. Interestingly it seems decision was finally made for the 155 SPH but which(surely its Caesar?), the rest of the buys ie GS Cargo trucks & LAW were already reported.
    4. Disappointingly no word on the LCS, or its complement ASW choppers, so no indicative of any decision for now. The LMS2 seem to indicate TLDM had a clear idea what they wanted, so lets see what comes.
    5. It seems the indicative timeline for LCA/FLIT into service would be around 2026-2030 for Phase 1. If it takes 3 years from signing to receiving the initial units, then affirmation has to be within the next year or so, indicative that the Govt are in no hurry to get it thru at least until after GE15. But we know from the top brass, priority will be given to LCA planes with the FLIT version to follow suit. Interestingly they intend to phase out MB339s in 2030, but even today are they still flying?
    6. Plans in place for LORAD, MERAD, UAS, MALE-UAS, MPA indicative that no approval or budget is given yet, so the wait goes longer. Interesting TUDM has identified 2 types of UAS they intend perhaps for different roles. Sadly no AEW/AWACS so it remains reliant on ground radars with priority given for LORAD & MERAD, and certainly no armed UAV.
    7. The CN235MSA could be used more for ISR duties rather than intended maritime patrol but it will likely shoulder both roles until the MPA buys are in.
    8. TUDM plans to get 24 utility choppers would indicate a total Nuri fleet replacement. But what about TDM’s PUTD choppers, or does it indicate a return to TUDM carrying on the role of hauling the Army?

  6. @Hazone
    They are saying on the basis that they assume to still be around after GE15, although from how recent years it appears to me; PH had been stingy or indecisive on any buys, PN was burying their heads in sand and only commit to purchases for Ops Benteng, BN2.0 have been the ones signing contacts & LOAs for SPHs, more choppers, more trucks & transporters, decision on the LCA/FLIT, etc. Many big ticket & significant quantities items.

  7. No, lah most of the contract signed were done during PN time. The current one has not signed anything significant and infact is the one that causing the current impasse of many things.

  8. But what about those above, the 20 LOAs (RM 1.14 billion)& 24 Contracts (RM 3.32 billion)? I thought the 155 SPH were just recently decided since there were no news about it during PN era, or did they signed and hush it up?

    On a related matter, I am surprised PH did not use the last Parliamen sitting to play up the Russia-Ukraine War as a pretext to highlight the sorry state of our defence readiness and the meager & slow procurements. They could have even use the fact that TUDM is renting equipment for their operations.

  9. marhalim,

    “infact is the one that causing the current impasse of many things”

    Show him contracts for chinese state manufactured weapon systems and surely he will sign it there and then.

    So what is the difference between having the chinese hugging H2O and iranian hugging AbgMat? At least previously we have lots of entertainment on the expense of AbgMat.

  10. Guess only thing new is
    1) 2 kind of UAS instead of just a male. Wonder what kind of uas it would be. Would be cool if they go and get the bayraktar

    2) the APC is only for Malbat rather than a wholesale replacement for the condor

    3) seem AF is now the apple in government eyes as they seems to get the most toys.

  11. @gonggok
    What can Iran offer us compared with China? Whatmore China is our 2nd biggest trade partner so if we can offset some of the trade, it would put us at a better position when dealing with them diplomatically.

  12. joe,

    It is a joke.

    China is actually our biggest trade partner right now. But that does not mean our politicians need to hug and be best buddies with CCP, especially someone who are entrusted with defending our country from the aggression of the forces (happening frequently in our EEZ) of your best buddies.

  13. What’s wrong being best buddies with everyone? Should we be anti China like Trump Should we be anti West like Putin? Should we be paranoid like KJU? We may be cordial to some and friendly to others, but are never antagonistic to anyone, not even when they shot down our MAS plane filled with hundreds of civvies.

    Heck if the West wants to be best buddies with us, they could give us aid, buyback our MKMs & Migs for Western planes at ally subsidised prices and we will promise them never to buy Russian again.

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