SHAH ALAM: Five bidders have been shortlisted for the tender of 18 Anti-Tank Guided Weapon Medium Range (ATGW-MR) which was published on April 18. It was supposed to close on May 18 but the deadline was extended to June 1. The original tender was cancelled shortly after it was published but Malaysian Defence got a story of it as well. The specifications posted in the post remained valid thought when the tender was republished.
And seven days (today June 7) after the deadline of the republished tender, a check on the Eperolehan website showed that five bidders have been short-listed. The lowest bidder is RM42.075 million; followed by RM42.322 million; RM44.550 million; RM44.736 million and highest RM46.673.
Going by the lowest bid, one ATGW-MR will cost around RM2.3 million each while the highest one will cost some RM2.5 million. Based on the above the average cost for one ATGW-MR will be around RM2.4 million each.
It must be noted that bids offered are below the ceiling price of the tender. I assuming based on the figures, even the highest bid could be selected for the tender, if it meets most of the technical requirements of course.
Anyhow, at LIMA 2023 Malaysian Defence was told that at least three contenders are expected to be offered for the tender, namely the LIG Nex 1 AT-1K Raybolt; Norinco HJ-12 Red Arrow 12E and the Roketsan Karaok.
Although the three companies took part in LIMA 2023, only Norinco displayed a mock-up of the contender for the ATGW-MR at the show. As the Army had a big presence at the show – a Chief of Army conference was held in the sidelines of LIMA 2023 – various high-ranking Tentera Darat officers had the chance to be brief on the capabilities of the Red Arrow.
Raytheon FGM-148 Javelin was not offered I was told as it is only available through Foreign Military Sales. The US Congress need to approve it sale to Malaysia first before it could compete in the tender. It was also unlikely that the MBDA Akeron ATGW-MR was offered for the tender. A mock-up of the Akeron was also displayed at the MBDA booth but it was not as prominent as the Red Arrow at the Norinco one.
— Malaysian Defence
View Comments (16)
2.3 million MYR per missile. That’s USD 500, 000 per missile …Are you sure the maths is correct?
The Australian Army bought 255 Javelins, the most expensive missile for 60 million USD. That is USD 235 000 per missile. This doesn’t add up…
Any ATGW from US or EU sourced would probably not considered due to the need of a very short lead time for delivery. The Western stocks are being taken up by the Ukraine war.
But wow! At Rm2.5mil a pop, it only makes financial sense to ensure it takes only 1 round to kill, say a PT91 Pendekar, that cost RM 4.5mil, as 2 rounds could buy you another tank!
How many missiles do Oz bought? We are only buying 18 launchers and missiles as well. The bidders also has to conduct training for the soldiers
''at only makes financial sense to ensure it takes only 1 round to kill''
The problem is that tactics at times call for the simultaneous launch of 1-2 rounds to increase the PK; especially so if a target has ERA or a APS. As it stands there is no counter for a APS except to saturate it; more rounds; more cost.
Going by the maths, 42.075 million MYR divided by 18 is indeed 2.3 million MYR each but that is per launcher, not per missile.
The deal is to buy one launcher and one missile. Next year, hopefully, they will buy more missiles so they will have reloads. Yes, I know, the usual deal is to buy one launcher and five missiles as one manufacturer representative told me at LIMA 2023. But buying one launcher and five missiles will increase the ceiling price. Oz deal is of course as they tagged along US and other countries purchase of the Javelin. Economic of scale
My question is whether it's politically palatable to buy 'Made In China' at present?
Our perception of China changed significantly following the airspace intrusion and Luconia Shoals incident.
I am just curious, how do they pick a missile? Do you go to a range and fire one, just like going for a test drive when buying a new car? These things are expensive, or do you test it using a simulator??
A live firing will be done but only for the one selected. Note that this is expected and one of the factors that the bidders will have to take into account when they calculate their bid.
"The problem is that tactics at times call for the simultaneous launch"
A problem which our puny budget can't afford to surmount. At 18 launchers, even with reloads next year, still only enough to take out at best 18 tanks.
Not to mention China but even our regional neighbours have tanks in the hundreds, so what we could afford to buy is simply not enough.
@TomTom
"This doesn’t add up…"
Since when does buying from local agents adds up to anything, except filling someone's pocket?