SHAH ALAM: THE UK voted to leave the European Union on Thursday, leaving the world’s economy in turmoil. And unsurprisingly, in response to the Leave vote, Prime Minister David Cameron announced his resignation saying he no longer want to lead the government following the Brexit.
With his resignation, the UK will soon have a new Prime Minister and Cabinet to navigate the post-EU world.
How is this going to affect the MRCA then? With the pound taking a beating in the exchange market, British kit will be considerably cheaper now – if you buy in Yen or Dollars – but that is to me the only plus-point so far.
Typhoon in the Spotlight
I am making assumptions here but I am guessing a lot of turbulence lies ahead for the Eurofighter Typhoon just as the MRCA programme is in the final lap.
Although much of the marketing for the Typhoon is done by BAE Systems, the UK government plays a big role though mostly in the background. With Brexit, what is certain, is the uncertainties. It is this uncertainties that may affect the Typhoon campaign.
It must noted that the chemistry between Cameron and DS Najib Razak, is one of the key reasons that Typhoon remained on the top of the MRCA short list.
Will the new guy in Downing Street be as committed as Cameron? At the moment that remained a big question as the new British government has to deal with the fall out of Brexit first.
It is likely though Malaysia will not be getting the same treatment as before.
Furthermore, due to Brexit, the financial guarantees offered by the current administration may well be reviewed or even cancelled. And without this financial lifeline, it is unlikely that the Typhoon offer will go anywhere.
The implications of Brexit remains complex and far-ranging says analysts and it does not only affect British but the whole world as well. This may well be the start of another financial meltdown, though for our sakes, I hoped it will not be the case. If it is, we can forget about MRCA altogether.
== Malaysian Defence
If you like this post, buy me an espresso. Paypal Payment
View Comments (37)
David Cameron did say that he want to "steady the ship" before resigning. I'm not sure what's that supposed to mean but I'm guessing much of it will be in regards of trade and immigration. With the UK leaving, their export will suffer for a time until the situation stabilized and Cameron might negotiate with US on how UK could be a part of the upcoming TTIP. The UK would then need to find a new trade partners or strengthen existing trade partnerships, perhaps among the Commonwealth. Some say UK would look to China, but I seriously doubt that would be the case. This could be a reason to pursue the export of Typhoon more vigorously. Having said that, if the UK economy continue to stagnate post-Brexit, this could interfere with planned upgrade programs of the Typhoon as the UK have other defence program in the pipeline such as the Queen Elizabeth class carriers and Type 26 frigates.
The main issue with typhoon is that it is foremost an European project, not exactly a british one. With the UK out of the EU, there is probably lots of things to be redrawn among the eurofighter nations consortium. That would make it a near future uncertainty in operating the typhoon as a fighter.
With the UK out of the EU, this is probably the best opportunity for malaysia to highlight its commonwealth status and try to have a closer economic relationship with the UK. With the future UK borders closed to Europeans like the romanians and poles (which now supplies most of the cheap labour in the UK), it is about time for malaysia to hype our commonwealth status and take the opportunity before other commonwealth countries (like india) makes a move.
Reply
Typhoon comes under OCCAR which is set up under an international treaty outside EU
Even we got financial guaranty, I think the cost maintain Typhoons will be much higher...
If British situation not stable, our remaining choice are Rafale, Gripen or more MKM. Sorry no Super Hornet because Uncle Sam will full force on F35 program. I do not c future on Super Hornet if we look for new jet n long term solution
Sad news. Rafale means a whole new and non-interchangeable weapons for us.
The maintenance/support costs of Typhoon - if we buy it - will be dependent on a number of factors related to the planes and how many hours they fly; I fail to see how Brexit will have any impact on this. As for Britain not being ''stable'' its economy is more resilient that Russia's, yet you mentioned us possibly buying more MKMs, which is as likely as us buying JF-17s.
Apart from possible mid term affects on the pound in relation to the RM; I doubt if Brexit will have any long term negative affects on Typhoon. The Brits will continue to seek sales for the type and the Europeans will do the same. Irrespective of the fact that Britain will - in the near future and not immediately - no longer be part of the EU; all the partners involved will ensure that the Typhoon programme is not affected; simply too much at stake here.
If the Typhoon programme is affected - very much doubt it will - then what about other European programmes in which Britain is involved - maybe not as involved as the Typhoon programme but still considerably involved with lots at stake. And what about defence companies like MBDA and Thales which are either partly British owned or have significant British involvement? Bear in mind that together with Germany; Britain has the largest stake in the consortium and that Typhoon benefits from significant British involvement/contribution.
For me the main issue is whether we can cough up the funds needed to pay for Typhoon and whether the government has the political will; that and not the affects of Brexit are the major issues for us.
Speaking of BREXIT, thought that PT-91M doesn't have Active Protection System so i hope the goverment reconsider that.
Marhalim
Is PT-91M getting a powerpack upgrade and anything sort of it?.There were few pages on the net about this.
Reply
I guess you have to ask these few pages about it as I have no idea about it
Cost is a major issue; no doubt the prices of APs may have dropped compared to previously but they are still not cheap. Another issue is whether there is enough power supply for a power hungry APS. Fitting an APS will mean that the ERA blocks on the top of the turret will have to be rearranged. By right, apart from an APS, the PT-91s can also benefit from other upgrades, including newer ERAs and chicken wire around the engine compartment and rear of the turret. Just as importantly there is a need for a dedicated simulator.
The hawk 100/200 series would be cheaper by 8% to 20% following brexit if we ever consider follow on purchase. That is the only thing i can think off that comes straight from Britain