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PETALING JAYA: Prime Minister Anwar Ibrahim today defended the government’s decision to obtain 28 helicopters for the country’s security forces via a leasing arrangement with Italian defence firm Leonardo.
He was responding to Ikmal Hisham Abdul Aziz (PN-Tanah Merah), who asked why the contract was not awarded through an open international tender or executed through a government-to-government arrangement.
Anwar told the Dewan Rakyat that the leasing arrangement helped alleviate the burden of maintenance, which had become a significant issue with billions spent annually on upkeep, materials, and natural wear and tear.
“Therefore, I agreed to continue with the leasing decision that was previously made, but we are expanding its scope,” he said, adding that countries such as Singapore, Indonesia, and the Philippines also practised the leasing model.
He said with the condition of Leonardo undertaking the maintenance, repair, and overhaul of the helicopters, the firm would have to ensure that the choppers maintained a readiness and operational level of at least 85%.
“We also added one more condition, that is collaboration with our training institutes, including Universiti Teknologi Malaysia and under the armed forces, to support Malaysia’s preparation as a regional hub,” he said.
He said similar hubs exist in Miami, US, and in Italy, with Malaysia set to become the third.
“Melaka is a likely choice due to its proximity to Batu Berendam Airport, which we have agreed to designate as the training centre for Leonardo helicopters,” he said.
He added that all specifications were determined by the relevant security agencies based on their respective operational needs.
Transparency and adherence to these requirements were prioritised, with modifications by Leonardo to meet the set standards, Anwar said.
He said while direct purchases might be considered for urgent needs, the primary objective was to maintain transparency, minimise unpredictable financial burdens, and promote knowledge transfer and training.
Earlier this month, Utusan Malaysia quoted defence minister Khaled Nordin as saying that the government would lease 28 helicopters under a 15-year contract valued at RM16 billion.
He said the acquisition was managed by the public private partnership unit under the Prime Minister’s Department (PMD).
Under the contract, 12 helicopters would be allocated to the armed forces, seven to the police, two each to the navy and the fire and rescue department, four to the Malaysian Maritime Enforcement Agency, and one to the PMD.
The defence ministry terminated the leasing contract for four Black Hawk helicopters after the firm that won the tender failed to meet the stipulated deadline, even after an extension until the end of October.