More MTO Tenders, Ammo and Mortar Bombs

On the way. Soldiers preparing to fire a 60mm mortar. BTDM

SHAH ALAM: More MTO tenders, small arms ammo and mortar bombs. Back in March, last year, Malaysian Defence reported that the tender for 12.5 million rounds of 5.56mm SS109/M855 ball ammo was awarded to Traumland Sdn Bhd for a contract of RM30.6 million.

It is likely that the ammunition is manufactured by Igman, an ammo manufacturer from Bosnia Herzegovina as the lot will be shipped from Polce port of Croatia, according to an MTO tender published on the Eperolehan website on March 27.

To be shipped in the same consignment are some seven million rounds of blank 5.56mm ammo which contract was also awarded to Traumland for RM11.1 million. It is likely Igman is also the manufacturer of the blank ammo which tender was published in October 2021.

A soldier with the Pathfinder company of the 10th Para Brigade firing his FN Minimi LMG at an exercise in late 2021. Note the 5.56mm belted ammo not placed in an ammo box. BTDM

As for the mortar bombs, they include 81mm high explosive and illumination rounds and 60mm rounds. The tender for the 2000 81mm HE mortar rounds was awarded to Betamat Sdn Bhd with an LOA of RM.8 million. The 8000 81mm illuminating mortar rounds was awarded to Prima Elite Sdn Bhd with an LOA of RM24.4 million.
Firing 81mm mortar at night. BTDM

Rheinmetall Denel Munition of South Africa the manufacturer of the 81mm HE mortar rounds as they will be shipped from Croega port of South Africa. The 81mm illuminating rounds will be shipped from the Bar port of Montenegro so it is possible Yugoimport of Serbia manufactured this.
60mm mortar rounds. Rheinmetall

As for the 60mm mortar rounds, they are manufactured by Expal from Spain as they are being shipped from Santander port in Spain. The tender for the 2500 high explosive rounds; 2500 illuminating rounds and 2500 smoke rounds was awarded to IUC Resources though no contract price was mentioned by the Eperolehan website.
A soldier being trained to throw a hand grenade. BTDM

Another MTO tender was for shipment of 20,000 eco-friendly hand-grenades for the Army. The tender published in September 2021 was awarded to Prima Elite Technology Sdn Bhd for an LOA of RM2.8 million. The grenades are likely manufactured by a German company as the items will be shipped from the Hamburg port.

— Malaysian Defence

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32 Comments

  1. Ironic. At one point we provided certain assistance to the Bosnians; now we’re buying small arms rounds from them.

    The question is what happens to SME. It’s in an unhealthy position so speak; lost several orders which in the past it would have received and has laid off a significant number of staff. SME to me is a reflection of what’s gone wrong with the local industry. What we should never do is to pay higher prices merely to support the local industry; don’t have the luxury.

  2. 5.56 ammo

    12.5 million round can equip 138,888 soldiers with 3 magazines of M4 ammo. In all out war, that would probably be expanded in 3-4 days, assuming that malaysian army has 80k soldiers and half of them is on the front lines shooting.

    To have a reserve stock of at least 1 months war, we need to have at least 10 times of that amount in stock.

    If for training, every soldier got to shoot 1 magazine worth of ammo every month, that would need 28.8 million rounds expanded each year. Even that is not really much actually. A single production line that makes everything from raw materials that has a production capacity of around 200-250 bullets per minute can fulfill that requirement in just a single shift for a year.

  3. kamal – ” thats so crazy…”

    I’m surprised you’re surprised. You ever noticed how vegetarian food can cost about equal or more than non vegetarian food and how organic stuff can cost much more?

    vader – ”In all out war, that would probably be expanded in 3-4 days”

    In an ”all out high protracted intensity war… We don’t expect to find ourselves in a high protracted intensity war.

    vader – ”assuming that malaysian army has 80k soldiers and half of them is on the front lines shooting.”

    The tooth to tail ratio is about 3: 1.

    Tom Tom – ”7 million blank 5.56 mm rounds? Is all that just for training?”

    Pray tell; what else are blank rounds for apart for training?

  4. I am chuckling at the term, Eco Friendly Grenade. What’s so eco- friendly about a grenade that’s designed to maim and kill, unless it’s a kiddie’s toy.
    I recalled a German company that produces medicare products and yes, at the same time manufactures fuses and shells that causes casualties!
    The best of both worlds; being eco-friendly and ever ready to wage war with your weaponry.

  5. If not mistaken blank rounds are also used to fire rifle grenades (those that are mounted on the muzzle end).

  6. We do not have rifle grenades so the blanks are used for training purpose only though during demonstrations they will also use them to simulate gun fire

  7. The term is only use for training grenades. They are mostly made of recyclable materials so there is no need to clear the debris especially when they are used in field training exercises, in our case mostly palm oil or rubber plantations.

  8. ”If not mistaken blank rounds are also used to fire rifle grenades”

    The Energa ones were retired in the 1970’a along with the SLRs which fired them.

    Taib – ”ever ready to wage war with your weaponry.”

    A different spin is ever ready to defend yourself if attacked.

  9. Lmfao why even need to buy dirt cheap ammo from overseas, even north Korea and Pakistan that were less developed could produce their own equipment and munition despite being less industrialized and developed than our country

  10. Azlan,

    “The tooth to tail ratio is about 3: 1”

    Then it just stretches out to about 4-5 days worth of ammo.

  11. Dauzlee,

    No idea if you’re new here but the reasons are widely known and have been discussed thoroughly. Korea and Pakistan have very large militaries; a large domestic market that enables sustained revenue. We in contrast have a small market; what’s the size of the Malaysian army in comparison to the Pakistani and North Korean army? It has nothing to do with being developed and industrialised but economics of scale. Look into the pertinent facts before you ”lmfao”…

  12. @dauzlee

    Probably because NK & Pakistan don’t get easy access to international arms market nor they have the foreign currencies to bought it?

  13. “We do not have rifle grenades”
    Yup, just correcting someone’s misconception that blank rounds are only for training. For instance Japan JGSDF still uses muzzle fired rifle grenades.

  14. “They are mostly made of recyclable materials”
    I think the correct term would biodegradable or environmentally friendly material. Recyclable material are still toxic and long lasting if weren’t being recycled in the first place, ie polyplastics.

  15. Vader – “Then it just stretches out to about 4-5 days worth of ammo”

    Assuming it’s a high intensity conflict and there will be other stocks of ammo.

  16. You also have to look at the mind set of North Korea and Pakistan. Both these countries have had major wars only fairly recently, the Korean War and multiple India-Pakistan wars and skirmishes. They have a ‘militaristic’ posture so to speak and ordinary North Koreans starve while money is pumped into their nuclear and ICBM projects. That’s obviously not Malaysia. Cannot compare apples to oranges or chalk and cheese.

  17. Tom Tom – ” Both these countries have had major wars only fairly recently, the Korean War and multiple India-Pakistan wars”

    The Korean war was almost 70 years ago. Pakistan fought wars in 1965, 1971 and Kargil. It has also had a longstanding insurgency problem in Baluchtistan and in FATA; not to mention numerous exchanges of artillery along the LOC and in the Siachen area; the world’s highest
    battlefield.

    Tom Tom – ”They have a ‘militaristic’ posture so to speak and ordinary North Koreans starve while money is pumped into their nuclear and ICBM projects. ”

    Both are countries whose very large militaries [much much larger than the 80 odd thousand strong Malaysian army] are in a high state of readiness and have existential threats.

  18. zaft – ”Pakistan don’t get easy access to international arms market nor they have the foreign currencies to bought it?”

    Nonsense. Apart from brief periods of being sanctioned Pakistan is largely free to buy from abroad. Long ago it decided to be as self sufficient as it possible could; hence the creation of POF which in addition to exporting quite a bit; has a monopoly on supplying a huge Pakistan regular army and reserves; as well as para military units. BTW a lot of the raw material/components needed is also imported.

    If you’re interested look up ”Pakistan : A Hard Country” [Anatoly Lieven].

    ”just correcting someone’s misconception that blank rounds are only for training.”

    There was no ”misconception” because in our context [the discussion was premised on a Malaysian context] blank rounds will only or mainly be used for training given the Energa grenades were retired in the 1970’s.

  19. Azlan “Nonsense. Apart from brief periods of being sanctioned Pakistan is largely free to buy from abroad. Long ago it decided to be as self sufficient as it possible could”

    Personally no one going to go for self sufficiency unless they absolutely need to. It’s a horrible defense posture that negatively impacts the economy.

    But fell free to believe what you want and continue calling everything else not inline with your personal beliefs as nonsense.

  20. zaft – ”Personally no one going to go for self sufficiency unless they absolutely need to.”

    Really? You mean it’s not for fun? Or you just have the habit of stating the obvious as if it’s gospel? Did I say Pakistan had no compelling reason to go for self sufficiency?
    No need to obfuscate; shoot the right calibre and do your research if meaningful discussion is your agenda. 30,000 tonne MPSSs you say? The army selecting the First Win? I can go on…

    Zaft -” continue calling everything else not inline with your personal beliefs as nonsense.”

    Still singing the same tune? Look at what you wrote and tell me with a straight face it’s not nonsense – ”Pakistan don’t get easy access to international arms market nor they have the foreign currencies to bought it?” Simple research would have told you otherwise. I’m assuming you’re not just trolling or are on hallucinogens?

    Since it’s hard to grasp for you; I don’t insist personal beliefs [which you harp about for lack of anything else] are true; I explain why what I’m saying is true and provide sources. If I’m wrong I’m wrong but you see unlike you I actually bother to conduct research and ask around before hitting the keyboard and making ludicrous nonsensical claims.

    Again; if really interested read ”Pakistan : A Hard Country” [Anatoly Lieven] and you’ll know that your statement on Pakistan is poppycock; yet you have the gall to claim I’m writing stuff based on personal beliefs.

  21. “Myaltech Sdn Bhd akan menggunakan tanah seluas 200 ekar di Senaling, Kuala Pilah untuk membuka operasi kilang peluru saiz berkaliber kecil dengan kaedah teknologi Switzerland,

    “Selain untuk kegunaan pasaran tempatan, sebahagian besar daripada produk keluaran kilang ini akan diekspot ke luar negara,

    “Perjanjian ini telah dimeterai didalam bulan Ramadhan yang mulia didalam masjid yang bersejarah di Negeri Sembilan,” katanya. – airtimes.my

    Maybe this is the reason SMEO not getting anymore orders

  22. No lah, this company just signed the agreement. It will take at least three years to set up shop and another two years to start manufacturing. There was another ammo factory that was supposed to be opened in Perlis. Gone quiet after the pandemic

  23. They are they got small orders, two for around 200K ammo earlier this year. I am told there is a plan to revive the company but when and how is the million dollar question

  24. The million dollar question is how much of this order can we consume if we’re to justify local manufacturing.

    Say if this 12.5million 5.56mm rounds will take 5 years to use up but it only needs 1 year to produce, what are we gonna do with the factory and staff for the next 4 years? Or look at it the other way, how can we consume 12.5million ammo in one year to justify buying 12.5million ammo yearly? Also is making 12.5million bullets gonna be profitable for that local maker or will it be priced low that taxpayers need to subsidise their existence?

    If we cannot answer these questions, better not to have local made ammo.

  25. SMEO was set-up in the early 70s by the government as we were still fighting the insurgents. As a state-owned company, it does not need to be profitable as it was set up to ensure that the military and police got their ammunition, locally instead of importing them. In the early 80s, the government thought it was good idea to make it into a government-linked company with a private company taking charge of the operations. As it was now turned into a profit-making company, the owners tried to diversify but failed and most of the money from the government contracts were consumed during that period. By early 2000, it was no longer making money from the small arms ammo manufacturing and furthermore it needs more capital to replace the old machinery. It cannot afford to do so now and it’s looking likely the government must bail it out in the end.

    It must be noted that it is likely that all government arsenal in the region which manufacture small arms ammunition are operating at a loss. It comes with the territory as the government knows that it will not make money doing so but they bite the bullet as these arsenals are state owned concerns. Our government seemed to not realise this. Or they do as my regular conversations with some people seemed to indicate so. But no one will come up to resolve it.

  26. “all government arsenal in the region which manufacture small arms ammunition are operating at a loss”
    Yup and this is true for any local manufacturing or local assembly, which is why richer countries that can afford, ie SG, will throw money into this venture to make it work, but for our puny budget we cannot afford to do so. It is folly to chase such a thing and it be more value for our money to get things from established players.

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