Malaysian Defence

11 Comments

1. If Leonardo could offer us a total package of M346(LCA+LIFT), ATR72(MPA), Falco(UAS), RAT-31DL/M(AESA radar), AW139/ 149/ 189(Medium lift chopper), AW159(ASW chopper), electro-optical sensors for our refreshed FACs, and all that at really, really good discount with some barter & trade-ins included, heck why not.

2. @joe
   In a perfect world, that would be wonderful. But no, we’ll probably see an Anka or such like MALES flying in TUDM markings. The Italian economy is in bad shape for an EU state. They’ll ask for $$$ that’s for sure😑

3. I take falco xplorer over evo…like them better lol

4. @Taib
   If Italy’s economy is in bad shape, then Turkey’s economy is down the drain with their Lira like… In Covid times no country escape the effects from it, but economic activities need to continue.

   If we have certain materials, raw materials or something else, that would interest them then it would help both us & them. Of course nothing beats cold hard cash, but it doesn’t have to be an ideal world if multiple of their products do meet the various needs of ours.

   Rather than buy them piecemeal and not get some savings, we could do a package deal and push for a hefty discount AND accept certain barters to sweeten the deal. Certainly beats walking away with less cash and nothing else.

   Considering all of our requirements are coming about the same time, this works to our favour. We could even ask for a staggered multiyear delivery-payment schedule if we play our cards right.

5. Taib,
   I think if their economy is bad, the Italians will be even more desperate for a deal, maybe some big discounts…

6. An bad Italian economy wouldn’t necessarily have any bearing on how a large Italian conducts its dealings abroad. The Russian economy and the rouble has taken a hit in recent years due to falling oil prices and other reasons : we don’t see Russian defence companies offering discounts.

   Furthermore; bear mind that a lot of defence gear are not sold with huge profit margins. OEMs make money from spares and after sales support.

7. Turkey is reportedly having a lira crisis for several years but seemingly weathered it with help from their one and only Gulf Arab friend Qatar. It actually made concessions to get other states to buy their goods inc defence products. We probably will get the same concessions if we buy Turkish. More like a Muslim state aiding another. And Italy isn’t Turkey. They may need cash and quick, but will they accept a barter arrangement for their UAVs and M346s? Italy isn’t exactly Russia or India or Pakistan.

8. Taib – “We probably will get the same concessions if we buy Turkish”

   We’d get the same “concessions” from anyone if we’d showed a genuine interest to buy things in quantity over a set period as opposed to buying a very small number with absolutely no certainty we’ll buy more.

   We’ve received various propositions from various countries in the past; including South Korea with long term friendly government backed loans to buy stuff. The problem is our lack of seriousness and commitment.

   Taib – “More like a Muslim state aiding another”

   More like one state aiding another due to realpolitik/self interests. Turkey stood by Qatar when its Muslim Arab “brothers” placed it under an embargo; to the extent that Turkish troops were flown to Qatar.

   Both countries also have shared interests/concerns in Libya and Syria and Turkey’s relations with the Gulf Arabs have been on a downturn in recent years. It was Arab traditional mistrust of Turkey (the Ottoman legacy) which led to Turkey forming close ties with Israel in the 1990’s but that’s a different story.

9. @Taib
   It is not “reportedly”, it did tanked in the last couple of years since 2018. Its in the news.

   Having to rely on oil money from another nation to prop itself meant its in a worse state compared to Italy. That also meant they need cash urgently and are less likely to deal for a multiyear payment term that’s friendlier to our pockets plus less open to barter trade compared to Italy.

   And I am not saying that out of wishful thinking because they(Italy) HAD DONE THAT, with Israel trading reconnaissance satellite and AWACs systems for M346s. So yeah, it CAN happen if we have what they want. Italy produces cars so they need a lot of natural rubber, they also produces beauty products & perfumes so they need natural ingredients like agar wood & such.

10. ‘Italy produces cars so they need a lot of natural rubber, they also produces beauty products & perfumes so they need natural ingredients like agar wood & such.”…add palm oil too, Italian companies buy Malaysian palm oil in significant quantities.

    “The problem is our lack of seriousness and commitment”..agreed

11. @nimitz
    I intentionally left out palm oil bcuz of the EU wide ban on palm oil usage & the stigma of them in consumer products (ie whereby product packaging specifically mention no palm oil used).