SHAH ALAM: Leased BMW superbikes for military police. The Army’s military police – Kor Polis Tentera Di Raja – took delivery of 40 BMW R1250RT super bikes today. The superbikes are under lease from Syarikat Ammo Defence Sdn Bhd under a RM13.7 million Letter of Award.
The tender for the superbikes was published in June, this year. Interestingly the release by Tentera Darat said the leasing period was for five years, but the tender notice said it was for a four-year period only. That said the leasing period could have been extended for another year during the negotiation process.
It is interesting to note only one potential bidder took part in the site visit, which is mandatory to bid for the tender. It is likely that Syarikat Ammo Defence was the only bidder. It is also interesting to note that the company took around three months to supply, test and deliver the forty superbikes as per the tender specifications. Ammo Defence had also supplied similar BMW superbikes to the police.
KOR POLIS TENTERA DIRAJA DIMANTAPKAN LAGI
KUALA LUMPUR : Panglima Tentera Darat (PTD), Jeneral Tan Sri Dato’ Seri Zamrose bin Mohd Zain telah menyempurnakan Perasmian Penyerahan Motosikal Penguatkuasa Kor Polis Tentera Diraja (KPTD) Model BMW R1250RT yang diadakan di Padang Kawad Pusat Latihan Kor Polis Tentera Diraja (PULAPOT), Setapak pada 22 Disember 2022.
Majlis Perasmian Motosikal Penguatkuasa Kor Polis Tentera Diraja (KPTD) ini diadakan sebagai manifestasi kepada usaha berterusan yang dilaksanakan oleh Tentera Darat Malaysia bagi mempertingkatkan tahap kesiagaan dan keupayaan KPTD.
Tentera Darat Malaysia telah meluluskan perolehan 40 buah motosikal penguatkuasa secara sewaan daripada Syarikat Ammo Defence Sdn Bhd untuk tempoh lima tahun bagi membantu KPTD melaksanakan tugas kepolisan dengan berkesan. Model BMW R1250RT adalah motosikal dari kelas sport touring yang menawarkan kuasa kelajuan dan keselesaaan serta ciri-ciri keselamatan bagi tunggangan jarak jauh.
Pelaksanaan rancangan untuk perolehan motosikal penguatkuasa melalui perkhidmatan sewaan ini adalah bertepatan dengan Tonggak Pertama Perintah Ulung PTD Ke-28 iaitu “Kelangsungan Misi dan Kesiagaan” yang memberi penekanan kepada peningkatan keupayaan mobiliti dan logistik berpandukan kepada penjajaran aset sedia ada.
As for leasing vehicles, this has been common practise by government departments for the decade or so as it is supposed to be cheaper overall. The MPs had also taken delivery of Honda Civics under a leasing programme, the last year or so.
–Malaysian Defence
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Waste of money. Isn’t a Honda good enough?
The Honda CB1300 in the US is more expensive by US1000 dollars compared to the BMW which retailed in Malaysia for RM136K due to higher taxes. I assume the cost of a CBX1300 in MY, retail, will be in the same ballpark
13.7 million ringgit equals to RM342,500 for each BMW.
RRP in malaysia is RM146,500. Surely a fleet buy of 40 bikes would get plenty of discounts. Also usually supplying to the government means deferred/unpaid import duties & taxes.
Service cost for 5 years/50,000km (BMW service inclusive) – RM6,271
http://www.bmw-motorrad.com.my/en/service/service-inclusive.html#/section-service-packages-pricing
That is a hefty profit margin. Congrats to the supplier.
Leasing = RM 342,500 per bike
Outright buy from BMW MY = RM 142,500
LOL! The paintwork and barely there mods must have cost them another 200k.
Yup but then the Army do not have to pay for mechanics, maintenance and spare parts.
Yup but then the Army do not have to pay for mechanics, maintenance and spare parts. Marhalim Abas.
I was about to comment the same but Marhalim beat me to it. Leased goods are ready for use but don’t belong to user. So maintenance is included in the contract like when we lease Xerox copiers. We tend to forget there are advantages here to outright buys.
5 years of warranty, servicing, consumables, and spares wouldn’t have costed as much as the bike itself. As a benchmark, regular civvie leasings would cost nearly as much as buying the vehicle and this is after factoring the maintenance and spares. It doesn’t make sense when the lease cost is higher than buying as leased vehicles does not become their property after the lease expires.
@KC Wong
Only Government (and GLC?) owned vehicles gets tax, duties & excise exempted. For private businesses, even those dealing with Government, would need to get from local franchiser or via AP.
This has been explained many times already – the difference between CAPEX (or development budget) and OPEX (or operating budget). In this case, its unlikely to be RM13.7m upfront, but assuming on a straight line basis, RM2.74m per year over 5-years. An advantage of leasing (in this case) is, after 5-years the Army can lease new bikes. If the Army buys the bikes, they will be used so long as they remain functioning (i.e., until they fall apart). But the biggest advantage of leasing which should have been obvious by now is, leasing means the Army doesn’t have to go through the government procurement and budgeting process when maintaining the bikes – the lessor will handle it. Government signs a 5-year contract today, the government pays the lessor according to contractual terms. Lessor will handle the rest. If the Army buys them outright, each year and each time ad-hoc repairs are needed, they have to go through the government procurement process – always a challenge. As to the higher cost? Mark-up by agent and standard industry mark-up for non-individual lessee.
Joe,
Even say with excise duties paid, all in costs with extended warranties and BMW official servicing for 5 years would be not more than RM170K. Those RT after 5 years time could still be sold off for around RM70-80K.
All in, a great business contract for the winning company.
It doesn’t make sense when the lease cost is higher than buying as leased vehicles does not become their property after the lease expires.
(joe)
Actually some taxis are leased out to driver’s when they can’t buy a taxi outright. After the lease period expires, the driver either pay a token sum to effect a change in ownership to the driver or that the taxi reverts to the driver when the lease is up. You can expect to pay a higher taxi rental to the owners if the latter option is chosen. Perhaps something along similar lines is also involved in a military lease.
@KC Wong
Yes indeed.
@Taib
Those you mention are Lease/Rent-to-Buy agreements, whereby after the lease period said vehicle becomes property of the lessor. More typical lease agreements meant, ownership of said vehicles still remain property of the lease company whereby after contract ends, the agent has to provide a new vehicle if the lease is renewed.
Im not sure about this MP bike deal, but I guessing its the latter rather than the former arrangements.
All things aside, why does the Military Police need 1300 cc Superbikes anyway? How are they going to race against at Sepang and who do they need to tangkap?…..maybe someone who has stolen a Pendekar? A 600cc will do. Rubbish idiotic waste of money.
The most bull… purchasing or leasing….when with the money they can spend on special forces like red dot,more nvg more plate carrier or new 5.56 sbr…what for,if for escorting they got pdrm for it….what a rubbish…even not all special forces had full loadout on each of them some still wearing 9mm vest cover with blackhawk jacket like arwah mej zahir….stupid comander and the stupid minister also
I notice the latest acquisition (or leased assets) have English markings on it eg ‘Military Police’ on the BMW escort bikes and the Navy’s AW139’s have the word ‘Navy’ on its underside. Is there a reason moving the makings into English? and not in Bahasa?
I can understand the need for military assets be in English (or in the local language) if in a foreign country for peacekeeping. Is there a new direction of culture in the armed forces?
MP has always been MP.
Malaysian gov had always been bilingual in nature. We had always had things like MOF,PMO,EPU,MITI,FRU living alongside JPM,KDN, Kementah,KPKT etc etc.
@Tom Tom & L detachments
While cost here is quite excessive for a leasing deal, it doesn’t obviate the fact the MP would have a valid case point to get them and thus managed to convince the beancounters to that effect.
The Armed Forces is as much a community by its own and as such does have a need for its own policing functions quite similarly to their civvie counterparts; from theft cases, to death investigations, to mundane VIP escort duties.
Removing the need for MP or the tools they need to function is akin to saying our society doesn’t need policing or that they could do it like the good ol days on bicycles. As taxpayers we HAVE TO give them the resources needed but of course at a fair price, not like the above.
When umno become minister this is what you get. That’s why
We are not sure of tgecactual terms of the lease. During my time eith the banks, the banks by agreement gives tge respinsibility of repair n maintenance back to the lessee. So who will do repairs n maintenance must look at the agreement.
We know from the agreements with other government agencies that maintenance will be done by the lessors. If it was to be done by the MPs, much better it be purchased directly than lease
Qamarul – “When umno become minister this is what you get. That’s which
That’s right. How astute of you.
Now that we have a “unity government” such practices will be a thing of the past. Local companies will not be given priority over the end user and there will be a fundamental and holistic revamp of our flawed and self defeating defeating policy. The armed services will get the capability they need and the taxpayer will get his/her money’s worth.
“Now that we have a “unity government” such practices will be a thing of the past”
I hope that is sarcasm or else you forgot that UMNO is back in Government in fact wielding the 2nd and 4th most powerful positions.
”I hope that is sarcasm ”
Given my general cynical comments on politicians here over the years and how I framed my post; what do you think?
I hope that is sarcasm or else you forgot that UMNO is back in Government in fact wielding the 2nd and 4th most powerful positions.(joe)
Jibes aside, there’s only the big H (Hope) and D (doa). This Unity Government will probably be like a Mountain gorilla pounding his chest but having little to show as results. Perhaps the best that we can hope for from TokMat as MenHan is for the urgent confirmed bids to be ‘actually bought & paid for’ by MenKew @ PM.
Hmmm… I’d thought you to be more straight forward and not pander to the “unity” Government fanboys spiel?
There will be a lot of talk, a lot of bluster and thunderous speeches, of politicians making the right noises, but I do not have much Hope they will be making the significant purchases that are needed to Keeping up with the Jones. I would like to Hope Im proven wrong but I don’t want to put my Hopes up.
Taib – “I hope that is sarcasm”
” I’d thought you to be more straight forward”
I don”t know how long you guys have been here but for almost a decade here; long before anyone else; I’ve been very cynical of politicians in general and of our policy; I don’t have to be more “straight forward” than I’ve long been and by now surely my sarcasm is well understood by regular posters. Nor do I “pander” to anyone [but myself] for the reason that I don’t give a shite.
– It’s not really a “unity government” because a real “unity government” won’t have an opposition.
– Whether it’s Tok Mat or Dirty Harry or Benny Hill as the Minister of Defence is immaterial as long as overall direction remains unchanged. Let’s not be under any cloud cuckoo land illusions; unless one is under the influence of hallucinogenics.
– Whether it’s a “unity government” or a “majority” one is immaterial because defence is not a priority; doesn’t resonate with the average voter; procurement will continue to be part of the patronage system and focus will continue to be national interests rather than the services or taxpayer.
We will also continue to have a,MAF whose capabilities don’t reflect all we’ve spent on it and we’ll continue t buy a little but not enough of anything [a phrase I came up with years ago].
– Until or unless there are deep, apolitical, holistic and fundamental changes nothing will change but there will be a lot of cosmetics and window dressing; as I’ve long maintained.