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Helicopter leasing for govt now more transparent, says Anwar

28 Nov 2024, 6:27 AM
Helicopter leasing for govt now more transparent, says Anwar

KUALA LUMPUR, Nov 28 — The government is using a leasing system in the acquisition of helicopters for use by government agencies and security forces because it is more transparent and helps avoid financial burdens on the nation, the Dewan Rakyat was told today.

Prime Minister Datuk Seri Anwar Ibrahim said the leasing arrangement also allows the government to save on maintenance and repair costs, which are currently a major issue.

“Even though it might be cheaper if we just buy it, but in the end, we found that the maintenance costs of the helicopters are higher than the initial purchase price,” he said during Ministers’ Question Time.

Anwar said this in reply to Datuk Seri Ikmal Hisham Abdul Aziz (PN-Tanah Merah) who wanted to know the reasons the lease contract for helicopters for the Malaysian Armed Forces (MAF) was not offered via an international open tender or executed on a government-to-government basis.

Defence Minister Datuk Seri Mohamed Khaled Nordin previously said the government would lease 28 helicopters from Italian defence firm Leonardo through a 15-year contract worth RM16 billion, for several agencies, including the MAF.

Anwar said Italy Prime Minister Giorgia Meloni had assured full cooperation in fulfilling the Leonardo helicopter leasing contract, as Italy holds a 30 per cent stake in the company.

He said this was conveyed by Meloni during their meeting at the recent G20 Summit in Rio de Janeiro, Brazil.

“Under this leasing arrangement, the manufacturing company must ensure that the availability and readiness of the supplied helicopters is maintained at 85 per cent,” he said.

The Prime Minister also said the government set a condition for Melaka International Airport in Batu Berendam to be used as a training centre for Leonardo helicopters and that technology transfer would be carried out in the country, taking into account Malaysia’s preparations to become a hub for Leonardo.

“Currently, such hubs exist in Italy and Miami, and Melaka in Malaysia may be chosen for its Batu Berendam Airport,” he said.

To a supplementary question from Onn Abu Bakar (PH-Batu Pahat) about whether a similar leasing arrangement will be used in the acquisition of other assets such as fighter jets, Anwar said that not all acquisitions of assets are suitable to be done through the leasing system.

“The MAF has also said that there are urgent requirements (of assets) that the country must acquire promptly without waiting for leasing (arrangement), that is through direct purchase,” he said.

In reply to another supplementary question from Ikmal Hisham on whether the Parliamentary Special Committee could verify that Leonardo could meet the specifications required for helicopters by each agency, Anwar said this matter cannot be discussed openly for security purposes.

“No country in the world discusses technical security requirements in public… I don’t think it is appropriate for us to go into detail about the specifications, needs, and strength of our military equipment,” he said.

— Bernama

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