SHAH ALAM: In previous articles Malaysian Defence tried to find out the cost of buying small arms ammo, those of the 9mm and 5.56mm variety. Why the two types of ammunition then? Because they are the ones most used by the services from the army, police and even Rela.
Finding out the cost of small arms ammo is relevant as I stated before that we are the only country in the region that is importing 9mm and 5.56mm ammunition apart perhaps Laos and Timor Leste. Not that we do not have the capability to make them in country. We have a state-owned ammo factory in Batu Arang – SMEO Sdn Bhd – which had been shunned since 2018 by the services, without any explanation.
Despite the reluctance to buy local ammo, two private companies had announced that they – separately – were building factories to make small arms ammunition. The first factory – located in Pahang – has been completed, I was told. That said the company – Ketech Asia Sdn Bhd – has not announced the start of ammunition production.
As for the cost of the ammo, we finally got them from a quotation notice for 9mm and 5.56mm ammo for the Eastern Sabah Security Command (ESSCOM). The contract for the seven-day notice published on November 20 2024 was awarded to Jelapang Resources Sdn Bhd. The notice in Eperolehan however did not state the value of the LOA.
However, from the notice’s specifications we know that they were looking for 10,000 rounds of ball 9mm ammo. The specifications also stated the cost for one round.
Quantity 10,000 rds.- Price per rds. RM 1.80 per rds. – Cost. The cost per rds includes all costs such as shipping costs, insurance, and other costs.
Based on this the contract for the 10,000 ball 9mm ammo should be RM18,000. And the contract for the 36,666 rounds of 5.56mm ball ammo should be RM131,997.60 as the specifications stated that each round should cost RM3.60 each. Both prices could be lower of course but not higher than the specifications as stated in the notice.
It is interesting to note both specifications failed to mention the grain of the rounds. Most of the services issued 115 grain 9mm ball ammo for their pistols and sub-machineguns. The specifications only stated the intended weapons for the ammo, for the 9mm is the CZ P10-C semi-automatic pistols while the 5.56mm ammo are intended for the Ferfrans SOAR, M16A1 rifle and M4A1 carbines.
Could this be a benchmark for future notices and tenders? I do not think so as the quantities and delivery timeline could be different.
— Malaysian Defence.
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“We have a state-owned ammo factory”
It is formerly state-owned. It is now privately owned with the owners hailing from Sarawak (under the same group as airod etc).
I am of the opinion that ammo manufacturing should be retained under state ownership due to our small market. It is not supposed to be a money-making entity but a strategic one.
Its sad. Way back 8n the late 70s n early 80s, the local ammo are used for range trainning only Even then there were stoppages using the local rounds
“we are the only country in the region that is importing 9mm and 5.56mm”
For good reasons, could SMEO have price down RM 1.80 per bullet and not go bankrupt… again?
Off topic, its saddening to see that a human life has been reduced down to RM 1.80.
@Hulu
“It is not supposed to be a money-making entity but a strategic one.”
We have plenty of such GLCs, good riddance of SMEO and we need to get rid off more deadwoods sucking up taxpayers money.