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UAE purchase two Erieyes for USD220 million or RM739 million

KUALA LUMPUR: The story below is self-explainatory. But since we are reportedly in the midst of purchasing the same system (as I mentioned before the deal was set to be signed last year but fell through due to the economic crisis), the UAE contract should be a benchmark for our deal.

According to my calculation, the deal is worth RM739 million. I must admit for starters ours would be much higher even if we purchase the same type of aircraft, the SAAB 340, due to the middleman mafia. The AEW deal is one of the most important item for RMK10, which according to some, defence would only be allocated RM5 billion, yes, a billion a year…..

Saab signs contract with United Arab Emirates for airborne surveillance system

Defence and security company Saab has signed a contract for the sale of an airborne surveillance system to the United Arab Emirates (UAE). The contract is worth approximately 1.5 billion SEK.

The contract covers two Saab 340 AEW (Airborne Early Warning) systems, comprising of the Saab 340 aircraft equipped with the advanced Erieye radar system. The contract also includes ground equipment as well as logistics and support services. Together with associated ground equipment, the system will provide a detailed situational picture that can be used in conjunction with, for example, border control and rescue operations.

“We’ve been conducting discussions with the UAE for several years concerning an airborne surveillance system,” says Saab’s CEO Åke Svensson. “This contract is an additional proof of our expertise and international competitiveness within the field of network-based solutions for defence and civil security.”

Saab’s Erieye surveillance system is a market success. The first Erieye surveillance system was delivered to the Swedish Air Force on a Saab 340 aircraft platform. The system has also been sold to Thailand with the Saab 340 as a platform, and this time the United Arab Emirates. The radar system has also been installed on the Embraer-145 aircraft and is operational in Brazil, Mexico and Greece. The system will soon be delivered to Pakistan on Saab 2000 aircraft.

Malaysian Defence.

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View Comments (23)

  • If RM1 billion a year, well would be better off to replenish old items such as guns, ammo, ATGM, ASM and missiles.

    My take:-

    Continuation of the M4 program
    New ATGM purchase
    Additional Exocet purchase to equip the NGPV
    SEA RAM
    AMMRAAM
    RVV AE
    SPH
    More 3D radars.

    Marhalim: Its exactly what I said before, but add to the list a new MPSS/MRSS.

  • Here's my wish list.
    1. 3P ammo for the Bofors Mk2s on the Lekiu's
    2. AHEAD ammo to make GAPU's Oerlikon's more capable of dealing with modern threats.
    3. Getting FFV to rebuild our Carl Gustavs. [which are still more accurate than the C-90's And RPG's]
    4. Getting sights for what M4s have already been delivered.
    5. Getting a commander's thermal so the PT-91 can have a hunter capability at night.
    6. Data links and a HUMS for the MKM's.
    7. Decent 125mm KE penetrators, instead of the PRENTIS M88 kinetic energy penetrators [based on the Soviet tungsten core BM-15 developed in the 80’s], which is almost useless frontally against 3rd generation Western made armour.
    8. An alerting device like ADADs mounted on a 4x4 to provide GAPU with early warning.
    9. 155mm base bleed and smart rounds for the
    G-5s which currently have only standard HE.

    Lets improve on what we have before thinking of big ticket items like missiles and radars.

  • Dear Marhalim, do has any idea if there' any VERA-E radar exist in the army and what type they're using if it's exist.
    I agreed with both Azlan and Kamal wishlist. Maybe we should just forget about many major assets procurement and should focus to update and upgrade our current inventory ranging from gun to missile.
    Oh ya, how about the Denel Roovailk helicopter, it has been long time since I heard about this in the internet. Is any of you has any idea about what the govt plan for this helicopter...?

    Marhalim: Yes, its the VERA-E radar that they are using. The Rooivalk deal has been dead for a long time. There is no more interest in the helicopter...

  • syameer, what killed the Roivalk deal was the 97 economic crisis. Prior to that, a deal was close to being signed for 8. Though MD had received congressional approval to sell Malaysia the Apache, the Rooivalk was the political favourite. [Unlike Bill Clinton, President Mandela was a personal friend of Mahathir and he pushed hard for the Rooivalk during a visit here] During a visit to St. Louis in 97, Syed Hamid Albar flew in Apache. A technical briefing by the US Army on the Apache was also given to Malaysia. At the moment, the only thing that will save the Rooivalk is an export order because Denel has not enough funds to continue development. The 12 SAAF Roiivalks have only just been declared operational but there no funds to plan any upgrades.

  • They should also freeze the program khidmat negara for a couple of years and used the money to augment the wataniah. I estimated the PLKN cost in the range of RM350 million to RM500 million a year. The wataniah should be given additional fire power and apcs or even mbt, either ex army or cheap brand new one. For RM100 million you can get them cheap VAN knock off from China and even cheap T72 knock off. Some MIL 17 or refurbished Nuri. Handover the 150+ 105mm from army to them.

  • kamal, this would be a case of 'robbing Peter to pay Paul''. As it is, the army does not have enough 105mm's and APC's, how on earth will it pass any to Wartaniah? Surplus T-72's can be bought as little as US$150,000 but that will mean supporting 2 MBT's and where will the cash come from to train Wartaniah to operate and maintain MBT's. Even the army has manpower and cash problems supporting it'a A-109's, how do you expect Wataniah to eperate Nuri's?.

  • Is anyone has any idea on what is the govt plan about the UAV procurement? Is it will be the ALUDRA or the Sapura made UAV...? My sources said that it will be the CTRM one...? Another things, En Kamal, I don't think for freezing the National Service is a good idea. As a youth, I supported the PLKN program as it's the best medium to trained our youth in many aspect. It's almost impossible for them to get any extra equipment at the moment. As for the heli, I don't think the govt would opt for the RUSSIAN one. At the moment, besides the proposed wishlist by Azlan and Kamal, I do think that the govt should opt for UAV into the armed forces services and it should be the locally-made uav.

    Marhalim: Yes it will be the CTRM one, Aludra and its ilk. What is interesting the type of UAV MMEA is going to opt for its maritime surveillance role apart from its fixed wing ambition and during a briefing two weeks ago, the Deputy chief of MMEA say they want a medium endurance version which ruled out the Aludra. The admiral would not say which one they want saying they have to issue the tender first. Due to the financial crisis, it has been deferred until 2015.

  • I got this news just a few minutes ago! Is it really that on the 12th Nov, Malaysian govt has put on order 30 units of Panser and a numbers of weapons from the Indonesian PT PINDAD? I'm really in doubt now....

    Marhalim: Ok, I saw this on Antara online. The funny thing no other media is reporting this not even the Bernama rep in Indonesia and of course the Utusan and BH correspondents in Jakarta, makes me wonder.....

  • Marhalim, how many VERA's were ordered and is it GAPU or RMAF operated? By the way Syameer, the VERA is a land based EW system not a radar.

    Buying anything from Inonesia after their 'rakyat' and media have been pouring filth on us totally puts me off. Yet kerajaan Malaysia continues to go out of it's way to sooth Indonesia's feelings. Instead of defending the Captain of KD Baung, our leadership announced that he would be reprimanded. Typical of a spineless leadership who can only talk the talk' but not 'walk the walk'. Anyway the problem is both the Panser and the VAB have almost nil protection value, both are easily penetrated even by 7.63mm AP and have almost nil mine protection.

    Marhalim: I dont know the numbers but I believed the VERA is operated by GAPU...