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AV8…What Others Are Saying…

PETALING JAYA: Malaysian Defence’s position on the AV8 is clear. Just Say No! to the AV8. Many others says otherwise and well, lets just say we agree to disagree.

But others, like the people of Defense Industry Daily is also saying that the AV8 is simply too expensive. Here is what is they are saying about it. And by the way, by quoting their comments here, I am not endorsing what they are saying, but just putting across what the authors think of the programme.

From Defence Industry Daily.

“The Malaysian army had expected to take delivery of a prototype AV-8 APC for testing in 2011, followed by deliveries from 2012-1018, but they didn’t sign the contract until mid-2011.

That usually means project delays. One mitigating factor is that the AV-8 contract builds on past relationships. Malaysia’s air force and navy are significant BAE clients, and Malaysia was already an FNSS customer as well. A series of contracts signed over 2000-2008 led to orders for 268 Adnan tracked vehicles, which incorporate design elements from BAE’s M113 MTVL and FNSS’ ACV-300 variant. They serve in roles including APC, IFV, ambulance, command, mortar, anti-tank, and armored recovery variants.

Overall project budgets for Malaysia’s “AV-8 APC” sit at RM 7.55 billion (about $2.51 billion), well above the $559 million going to FNSS and BAE. The question is why.

Statements to date have tried to justify it by citing development costs, but beginning from a complete platform like FNSS/BAE’ Pars 8×8 should keep those low.

Some of the extra $2 billion comes from the fact that this is an industrial project that’s paying to enhance a local industry and make a regional statement, rather than a straight purchase aimed purely at meeting military needs. Setting up that industrial infrastructure, training workers, and ensuring technology transfer does cost some money.

Then there’s the fact that Malaysia is best described as a partly-free country, where corruption is not unknown. Setting up the local industrial and support infrastructure offers very convenient opportunities to enrich political figures tied to sub-contractors, a practice that’s extremely common in the Middle East as well. There are also credible reports of straight corruption and graft in Malaysia’s previous major defense buys, going all the way to the very top of its political structure.

The question is whether Malaysia’s current political arrangements offer much in the way of countervailing accountability. History suggests that they will not.”

Yes I know a lot of people will have their panties twisted with the second last paragraph. But its must be said it is the perception of the authors, mostly due to the Scorpene affair. Mind you it is not just limited to DID. You might not see it in respected trade journals but if you speak to anyone in the industry most would say the same thing.

As for me, I have yet to be convinced by lame explainations why we must spend close to RM8 billion for a wheeled AFV when an off-the-shelf vehicle would cost half of that amount. As whether or not, it is graft, I do not have the evidence to say so.

–Malaysian Defence

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Marhalim Abas: Shah Alam

View Comments (41)

  • the 500 million maybe our lucky figure
    since maybe the same figure cost lost of our
    MESMA..

    Reply
    Its not RM500 million but more like RM4 billion..

  • Screw national interests!! Some local analysts have justified the cost because of the need to develop a local industry with know how to develop our own vehicle. Unfortunately, none of our 'analysts' or the editors of ADJ, Tempur or Perajurit have publicly asked the MILLION dollar question [or ringgit] - just who will buy our AV8? In the first place, many of us would be extremely interested to know what was the recommendation made by the Armor Directorate??

  • Yeah we have all said so in earlier articles that the AV 8 is an unsustainable project as it is far too expensive for the military and the money is not well spent.Whether as alledge there are such things happening we are all not sure but what is sure is that with the money spent, we must gte a vehicle that outperforms all other vehicles. Better to buy the German Boxer with that type of money and may be also add in a batallion of light tanks like the ULSAN made by Austria and Spain

  • Almost every single major defence buy we have embarked on has been covered in controvesy and had its share of cockups - NGPV, Scorpene, Su-30 MKMs, AV8, LCS. We seem to have this inability to lean from our mistakes and our politicians continue to put other interests first before that of the country. And to make things worse, we have opposition figures who can't sem to be able to ask the right questions in parliment and who make an issue on everything based on innacurate info for political milage. Not to mention 'know it all' NGO's who would rather disband the MAF and rely on a lightly equipped ara-military force to defend the country.

    If indeed the Europeans make us an offer we can't refuse and we do buy the Typhoon, the whole deal will probably be another 'scandal' waiting to happen. MINDEF needs to learn how to explain things in a better manner to the public.

  • why we need to paid such high price for something not battle proven yet..even turkish army has not make any order for ths 8x8 pars...

    Reply
    Thats the RM7 billion question...no answers yet....

  • Why AV8 so expansive, built in msia no make sense, RM7 o 8 bil, wah no other choice kah, ni kalo ada org nak kantau ($$$$$) just say so kita org nak tahu jugak.......price tag........

  • Since we inherited instant culture and
    this culture clearly show when we just
    jump to 8x8 pars design without consider
    we just green in AV industri together with
    FNSS loby just make this expensive copy paste
    technology will proved that we can level
    field with singapore or indonesia in AV industri..
    maybe we just too kind to helping turkish with
    capital for their R&D and then their will sell this technology
    to other country with much lower price since we already
    bailout them..

  • Errr..I named the chief beneficiary of the project but Marhalim decided he didn't want to be hauled to court for something posted on his website. Not to worry, just follow the holdings. Who owns MMC & by extension Deftech? The anwer is painfully obvious.
    I can understand something for the Panamera Turbo Fund but it's a little bit ridiculous lah. Tapi, kan ada GE on the way?
    Remember ya....it's us idiots who fail to hold these politicians to account. Who is to blame? Rakyat bodoh lah.

  • Tak pergi buat liputan berita persaraan PAT on his vision and achievement and future outlook on the ATM.
    But it will be good to ask him where is the missing jet engine or EC 725 his favourite helicopter! hehehe.....
    But don't waste time if you have better things to do. regards.

    Reply
    What vision?