SHAH ALAM: In an earlier post, Malaysian Defence speculated that the budget for the new 12 helicopters will be at least RM1.6 billion – the contract price for 12 EC725 helicopters bought in 2008.
I further stated that:
This was the contract price for the EC725s, which I think had set a precedent for the new contract. It could be higher, but it will not be lower than the previous contract.
Yesterday, Defence Minister DS Khaled Nordin stated that the allocation for the new RMAF helicopters announced in the 2024 budget was RM2.8 billion. RMAF, he said is also getting another RM1.13 billion in allocation this year to continue with its other procurement programmes. It is interesting to note that under RMAF Cap 55 plan the service envisaged operating two helicopter squadrons of one make.
If indeed the RM2.8 billion allocation is for 12 helicopters, it is RM1.2 billion more than the amount I had predicted earlier. The higher allocation is likely to account for the ringgit depreciation. That said I also stated that it will not be lower than the amount we paid in 2008, which was sixteen years ago.
— Malaysian Defence
If you like this post, buy me an espresso. Paypal Payment
View Comments (49)
2.8 bill for 12 helos? Our MYR plummeting that bad huh?.Can we just put our pride aside and order additional caracals from PTDI or airbus will only subcon them to PTDI?.But if the pricetag are about the same with the unit that out from airbus might aswell order directly with airbus.So as of now it could be additional h225ms for TUDM or it could be not right
No lah, PTDI only finished EC725s meant for Indonesian military.
Err 1.6 doubled is 3.2 right?
Yup I was speaking roughly.
A confirmed allocation of RM2.8 billion?
That is USD 600 million.
If this is true, the development expenditure allocation for TUDM in RMK12 2021-2025 is the highest ever in its history.
Confirmed allocation for TUDM in RMK 12 2021-2025
18 FA-50MY - USD0.92 bil
2 ATR-72 MPA - USD0.171 bil
3 ANKA MALE UAV - USD0.091 bil
1 GM400 Alpha - ground radar - USD0.038 bil
12 Medium Lift Helicopter - USD0.6 bil
total USD1.82 billion
Also I believe the higher budget is for TUDM to get a fully fitted CSAR chopper config since the EC725 afaik is quite a bit short on gear to be the CSAR that they wanted.
But dang where did they get all that money? LCA also ordered, MPA also ordered, MALE UAS also ordered (i think?), then whats left in the kitty for big ticket items; Kuwaiti Hornets, AEW, MRCA?
Joe "But dang where did they get all that money?"
The army
Philipines buy 32 blackhawk worth 624 million usd. TUDM requirement is 12 helos. Maybe we can buy 12 more?
RM2.8 bilion for 'perolehan helikopter TUDM fasa 1'? Is that means there will be another phase?
I suppose no complaints. Air Force wants its second helicopter squadron, Govt agrees to fund and provides more money then expected. Whether its sufficient is another problem for another day. But for now, when compared to Army's 2 step forward and 1 step backwards procurements (e.g., SPH, the constantly changing armour requirements, the random new combat rifle, and the Blackhawk leasing) and Navy's black hole LCS, RMAF is on track to meet their (supposedly) useless DWP and CAP55 plans. They got their 1st batch of MPAs, 1st batch of LCAs, 1st batch of MALE drones, nore Long Range radars, and now 2nd helicopter squadron signed off before 2030. Next cycle (after 2030) they can either buy 2nd batch of everything bought this cycle, or focus on the MRCA and the AEWC.
Joe “But dang where did they get all that money?”
The army. (Zaft)
I like Zaft's answer. The Army should give way to the Navy and Air Force for now as these junior services need all the money that MinDef can get.
No lah, the money for Army is already allocated and budgeted for, as with navy and air force. Do note that the payments are on progressive basis not one lump sum at one go. The only issue with the Army as they keep changing their priorities unlike navy and air force.
@ZAFT
The budget for each service arm is already split so there is no way to rob Peter to pay Paul. But based on the yearly budget allocated for TUDM its seems unlikely they will have enough to pay in a single RMK. To stretch into the next RMK meant cutting close to when we should start buying MRCA already so unless from now until 2029, the Govt have to make huge cuts along the way to other arms which they cannot do either as each of them has their priorities as well. And it is also obvious our Govt cannot magically up the strength of Ringgit to pay for all that which were buying in USD.