SHAH ALAM: The purchase of 18 Korean Aerospace Industries (KAI) FA-50 Light Combat Aircraft was done without the involvement of middlemen, the Defence Ministry said in a written reply to a member of parliament on March 22. The reply said no middlemen was appointed as the purchase was made through an international tender.
It further stated that the ministry signed the Letter of Award on February 24, 2023 for the purchased of the 18 FLIT/LCA with KAI with the cost of RM3.8 billion for the period of five years. RMAF it said will take delivery of the first aircraft in 2026.
TUAN OSCAR LING CHAI YEW [SIBU] minta MENTERI PERTAHANAN menyatakan status perolehan Fighter Lead-In Trainer – Light Combat Aircraft serta sama ada syarikat perantara dilantik dalam perolehan ini.
JAWAPAN
Tuan Yang di-Pertua,
1. Perolehan 18 pesawat Fighter Lead In Trainer – Light Combat Aircraft (FLIT-LCA) telah dilaksanakan secara Tender Terbuka Antarabangsa, tanpa melibatkan sebarang pelantikan syarikat perantara.
2. Kementerian Pertahanan pada 24 Februari 2023, telah menandatangani Surat Setuju Terima (SST) bagi perolehan 18 buah pesawat pejuang ringan dan latihan lanjutan Fighter Lead-In TrainerLight Combat Aircraft (FLIT-LCA) FA-50 dengan Syarikat Korea Aerospace Industries (KAI) yang melibatkan kos pembelian berjumlah RM3.8 billion untuk tempoh 5 tahun. TUDM dijangka akan menerima pesawat pertama pada tahun 2026.
It must be noted that the ministry had quoted a lower figure of the contract price as opposed to was reported at the time by Malaysian media including Malaysian Defence. KAI stated the figure as US$920 million. A Google search showed its RM4.07 billion as off the time of this post. I have no explaination for the difference.
— Malaysian Defence
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View Comments (16)
Yes and half of the payment is from palm oil. Did you know that, Marhalim?
https://bulgarianmilitary.com/2023/02/24/malaysia-pays-18-kai-fa-50-light-combat-aircraft-with-palm-oil/
No, I didn't know that. It's gratifying to learn from the Bulgarians
So there is no involvement of local agent Kemalak Systems?
I am glad that the proposed local assembly idea is not taken up.
On the MPAs
Ironically PTDI does have experience and knowledge of MAD and sonobuoys when they were involved with Turkish Navy CN-235 MPA project. But still the CN-235 would not meet the speed requirement.
https://www.indonesian-aerospace.com/aircraft/detail/23_cn235-220+asw
Paying with palm oil, coconuts or petroleum, it’s still money. Do they still palm oil for biodiesel?
No middleman, just a middlewoman from Mongolia, that's all ;-)
Despite what was said Parliament, even G2G deals can come up controversies if one digs deep enough.
The article in 'The Malaysian Insight' sounds dodgy. Written by someone [who did some fast research] for someone and intended for a purpose. He says ''the PH-BN government must reconsider purchasing the ATR 72MP'' but does not say why; merely that it has to be replaced because of issues he does not delve into. he also says '' explore other affordable and reliable options, such as the P-8 Poseidon '' - the P-8 is way above the allocated budget so how can it be ''affordable''.
Even if the gov purchased directly from an OEM. The OEM would still hired some highly connected local to be their advisor, marketing agent & consultant.
Even if we applied all of the good corporate governance we still won't stop some individuals making millions. for example In the shortfin baraccuda program. The guy who when in gov wrote the submarine acquisition strategy is the same guy being hired after leaving public office by DCNS as advisor.
Zaft - ''The OEM would still hired some highly connected local to be their advisor, marketing agent & consultant.''
No Zaft you're mistaken. You are assuming things you don't know. At times OEMs are happy when there is no local agent because it can be a minefield; at times they require a local agent so it really depends. Take the Sabre beacons which the RMAF uses for example; the OEM has no need for an office here so they have an expatriate who represents them here. Pilatus on the other hand has or used to have a permanent representative here. Steyr had a here for years before they tied up with SME and sold anything. I could go on...
Zaft - ''Even if we applied all of the good corporate governance''
No and nobody said so but if we actually had corrective mechanisms in place and apolitical oversight; the huge cockup that is the LCS programme could have been prevented or mitigated.
For MPA i think when come to budget and maintenance, it may sacrifice some of the requirements. And we got 2 Muslim country brothers are using it. Is already proven and it based as commercial plane, it will be a lot cheaper to maintain.
Michael - " And we got 2 Muslim country brothers are using it"
What's that got to do with anything? Who cares who's using it as long as it meets our needs.
Michael - "Is already proven"
"Proven" based on what? Being operated iniby peacetime conditions by several users doesn't necessarily make it "proven"' Has it been deployed it a high intensity war or taken part in a sub hunt where it's sensors contributed to the sinking of a sub?
Spare me the "proven" cliche