SHAH ALAM: Work on the radar station in Bintulu is expected soon with the delivery of the Thales GM400 Alpha long-range radar expected in mid to end of 2026. The LRR station is expected to be operational by the end of 2026, Thales Malaysia country director François-Xavier Boutes said in a recent interview with Malaysian Defence.

He said work on the site is expected soon as the company and its partner, Global Komited Sdn Bhd, have gotten the approval from the local authorities in Bintulu. Thales signed the Letter of Award with the Malaysian government for a single Ground Master GM400 Alpha long-range radar and the associated work on December 8, 2023. Thales is responsible for the radar while the civil works will be conducted with Global Komited.

“We started the work on the site but not building themselves, what we have done is the preliminary phase administrative work and authorization process,’ he said.

Thales will be delivering a GM400 Alpha complete with radar station infrastructure, including access roads, power source, air conditioning, telecommunications systems, radome and associated logistics, to the end user, the Royal Malaysian Air Force (RMAF). The LOI for the radar and associated work was signed at LIMA 2023.

The full transcript of the interview:
We are fortunate enough in Thales to have a very balanced portfolio and type of activities as a group, but also in Malaysia. So even though you are obviously focusing on defense, you need to know that Thales in Malaysia is like 50-50 between civil and defense.

Including the trains, right?
So, train activities at large have been sold to Hitachi last year. And so we have now diverted all our, what we call ground transportation, so basically train, to Hitachi. But yes, we were very present with Prasarana and MRT line, either in signaling, communication, and cybersecurity. Until last year, where we diverted all our transport activity to Hitachi. But we are still present in the civilian market. First, in the air aspect of transport. So we have very strong ties with AirAsia and Malaysia Airlines.

With AirAsia, basically, we are the only and sole supplier of their avionics for their Airbus fleet. So we have been providing the systems on board their aircraft, and we are ensuring the long-term maintenance. For Malaysia Airlines, their fleet is a little bit more diverse. They have some Boeing, some Airbus, etc. So we are part of the fleet where we supply avionics, and we just signed recently a new long-term maintenance contract. So that’s one part.

We are also present in civil aviation, competing with our best friend from Leonardo. So today, Malaysia is divided in two, basically. Leonardo is doing Peninsular, we are doing Eastern Malaysia, in civil aviation, traffic control. And then we have all the banking, telco activity. That is not always as famous as our defense activity. But in banking, we are doing all the security and personalization of credit cards.

So if you have a credit card from Maybank, for example, it will be a credit card that has been safely personalized by Thales in our factory. We have a factory in Puchong, 80 people. So we are working with Maybank, we are working with CIMB, pretty much all the main banks in Malaysia. Telcos, we are doing the SIMs. E-SIM, Nano-SIM, and of course, traditional SIM. We are working with Maxis, with TM, etc. So quite a big business also in the civilian aspect. And of course, the other part is defense. So you know very well Thales, so I don’t have to elaborate on what we do.

But Thales in Malaysia, in one or two words, we are present for 50 years now. First contract was with the RMN in 1972. Radar on board one of the first ships from the RMN. And well, since then, we’ve grew in pretty much all the forces, which has given us the opportunity to have a very wide install base in the Malaysian Armed Forces, which is first a strong sign of trust from the Malaysian Armed Forces. So we are extremely grateful of this and we will discuss about it later. But we try to work not only as a big OEM, but also really as a local partner.

That’s very important and we’ll get back on this later. And we’ve been able to be on board a lot of the most important project in the Armed Forces. And so, I mean, in the recent years, the Army, of course, comes.

We’ve been also providing the systems on board Gempita, which has been an ambitious project for the Army. We are providing through Force Shield, the Air Defence with the Starstreak (VSHORAD GBAD) . In the Air Force, we have been working on air surveillance with long range radar, air defence, but also systems on board aircraft, like the Sukhoi 30, for example, the A400M.

We supply avionics, we supply coms, optronics, etc. So quite a strong presence also. And last but not least, as I was saying, it was our first reference in Malaysia, the Navy. We have a very large presence in the Navy. We are on board ships and submarines. And here we are finding, again, the same usual, I would say, toolbox of Thales.

So, radar, coms, electronic warfare and sonar on both. So on submarines, of course, on both of the Malaysian submarines, and on many of the RMN vessels. Even though the stock base of the RMN is extremely diverse.

We have a lot of OEM present, but we have been present for a long time. So the defence presence, even though it weighs only, I would say, 50% of our revenues, it’s probably the activities where we are investing the most time. We are investing in terms of people also.

We have a local presence close to the forces. We have one support centre in Lumut. We have one maintenance centre in KK (Kota Kinabalu), for the subs.

We had until very recently a comm team in Pekan, close to Deftech, that we have now shifted to KL. And we are now building a local team on air force, with air defence, air surveillance projects that are rising up. So, I’m sure, I mean, many of the points that I’m describing at large are embedded in the other more precise questions.

Talking about the supply of the GM-400 Alpha radar, the LOA was signed last year. What’s the timeframe for delivery for the radar itself?

Basically 2026, so probably mid to end 2026. So the GM-400 alpha in Bitulu is actually a first for Malaysia, because it’s the first time the air force has been contractualised a full turnkey project with civil work and system.

So Thales is responsible of the whole programme. And we are in charge with our partner, Global Komited (Sdn Bhd), of the civil work in Bintulu with the new site, and of course the production of the radar. So today we are anticipating radar fully operational on its new site in Bintulu around mid to end of 2026.

Have you started work on the civil site at the Bintulu site already?

So we’ve started the work, but we did not start yet the building itself. We are more on a preliminary phase with all those administrative works, preliminary study, feasibility documentation, authorisation with the relevant local agencies. So yes, we have started, but we did not start yet the building. We will be probably in a second phase next year.

I’ve been told that you got the contract for the tactical radios. The contract was awarded to Traumland (Sdn Bhd) at Lima 2003, and it was Thales Radio. Yeah, is that correct? And then another 500 plus radios also for Traumland, and it was Thales Radio. Is that correct?

So, on radios, many things, because as you know, we had for the past 26 years a joint venture with Sapura, it was STE (Sapura Thales Electronics Sdn Bhd). And so last year, end of 2023, but the process has been finalised now in this year, in 2024, we have decided to divest from Sapura and to dissolve the joint venture, which means that, of course, it created a little bit of uncertainty on radio, and many information have been, I would say, trickled during the past months. So, first information, yes, Traumland has won in 2023 a contract for the supply of 160 radios. So those were Thales radios.

And actually we have delivered with Traumland all the radios in Malaysia, it was last month. So, factory acceptance, site delivery, everything has been under way, and the program has been fully executed on time in October 2024. So that’s the first question.

The second question, so no, Traumland, I cannot speak on behalf of Traumland, but I don’t think Traumland has been awarded this contract for the 555 radios. And clearly, it is not Thales radios. So I think, because I’ve heard also about this, but I think it’s more civilian radio, Motorola type.

Oh, okay, okay.
So to be confirmed, but if I remember well, when I heard about this, those 555 radios, it was more like Motorola radios. And I think it was from, I forgot the name of the company, the com company of Chendan Auto.

Oh, okay. I think so. Okay.

But no, it was not, it was not tactical radios, that’s for sure.

I will check again, it’s okay. The Startreak missiles and the launchers, since you delivered them, have you got any feedback from the Army about the missiles and launches itself?
So feedbacks are really positive on Forceshiled and the Startreak. I’m sure you know, I even think you wrote an article on it, but like two or three weeks ago, the Defence Minister and the Mindef KSU went to Johor for a firing test and the Startreak missiles hit the targets. So, it was a success. I think the missile itself is a huge success in the war between Ukraine and Russia.

They are using Starstreak daily with an extremely accurate rate, which has led actually to a huge boom in production in our factory in Europe for Starstreak and the new missile, which is LMM (Light Multi-role Missile. My feedback from the users, Army or Air Force, are very positive.

Of course, the question that we have with Starstreak, the question we have with pretty much all our programs, is maintenance support and potentially upgrade. So this is something that we face in Forceshield, but it’s something that we face in all programs, is how we can support the users locally with our local partners. So Starstreak is with Global Komited, but also with our local presence with the different offices we have that I was describing throughout Malaysia, how we can help them to maintain their equipment and their system in a very efficient manner, which means competitive, short schedule of time, and very reactive.

So we try to set a maintenance frame for Forceshield, and I think we will finalize this in the coming weeks. The Ministry of Defense is about to finalize a support contract with Global Komited and Thales to make sure that we can support them. So that’s the maintenance aspect.

And of course, related to your initial question, this is reinforcing the satisfaction of the user. Because at the very beginning, usually with Thales equipment, they are usually happy. But then after 3, 4, 5 years, there is need for maintenance support, so we need to set a contract.

I think this is really, really important. Then for the future, of course, the users are always willing to upgrade their system to get the latest technology. So we have been discussing a lot with the users.

The former PAT (TS Gen Affendi Buang) came to the UK. He was invited by the UK forces and Thales to witness a demonstration of LMM. And he has been positively impressed by the demonstration, and the idea will be in the future to upgrade those Starstreak and to evolve toward LMM type of missiles.

The launchers can still use the NG launchers, just the missiles. It’s just to upgrade the type of missiles to the latest technology. Starstreak missiles have been delivered in 2018, 2019.

So the idea is now that they have a real need, because they have been using missiles. Of course, missiles are not like radios. When it’s used, it’s used.

So, there is a need to replace all the missiles that they have been using in various firing exercises they’ve done. And here the idea is to upgrade them to a new technology, which is the LMM. The former PAT has seen the demonstration.

We have provided all the information. So I think this will be the next step, clearly. And after, I think it was within your questions, but the question is medium range and evolution of short range.

Because today there is one programme which is for the Forceshield. I feel there will be an interest from the user to deploy those type of short range air defense system in other parts of Malaysia. So that’s something that we could work on.

And of course, there is the medium range project. So Thales is, you know, if you compare to like Airbus, Naval Group, all those companies that are building platforms, Thales is not building platforms. We are providing systems, but we’re not building platforms, which means that we can work with pretty much everyone.

We are agnostic. That’s why, for example, in the airline, if I take a non-defense domain, we are working with Airbus. We are working with Boeing, with Embraer, even with Comac.

We are agnostic in terms of platforms. So for the MERAD, it’s the same thing. We could work with any missile manufacturer.

So it could be European, it could be Asian, whatever. So why we are today in this medium range competition because of our install base. We have, of course, with the SHORAD, the Forceshield, we have the GM200, the GM400.

We have the long range air surveillance with the GM400 and the C2 system in Eastern Malaysia and in the Peninsula. So it will, of course, make total sense to integrate the future effectors of the medium range project within a system and radar that are already in place. Because otherwise, if you buy a missile with a new radar from another company, it means that the interoperability, the exchange of information, the C2 system itself will be much less efficient than if you have a complete system.

So what we are offering on the medium range approach is to be at everyone and especially the user disposal to build something on a collaborative manner with whoever they want to select for the missile. And then we could associate whatever missile with the range, the quality that they want, the user, with our radar, the GM200, or GM400. And then we will integrate all this in a total system that will be based on air surveillance, air defence and missile reaction within a total integrated system that will be embedded in the Peninsula and Eastern Malaysia. That’s the goal.

Because you can also link up with all the ships with Thales radar, especially when the LCS is completed.
Yes, exactly. That’s the target. That’s the target. And at the end of the day, clearly, what we see for the past two years is an interesting strategy from the Ministry of Defence to go towards local champions, to get enough workload, enough projects in order to create local experts.

There will be a champion of Navy, a champion of air defence, a champion of coms, a champion of electronic warfare, whatever. What we would like to do is, based on our presence and our experience, to build really a local champion with global committed of air defence, air surveillance. For the past 14 years now, we have been selected by the Air Force on our radar.

The first GM400 was 2010, delivered 2012. And then we have been selected with Force Shield for GM200, 2016. And then we have been selected again in 2023 for the GM400.

So we start to have quite an install base, quite a local footprint with our partner and with our local centre of expertise. And now the idea is really to create a champion of air surveillance, air defence with Global Komited.

You think there’s… because some of the radars, especially the one in Peninsula, basically obsolete radars, the old radars, you think there will be another tender for those kind of radars?

I hope, I mean, I think clearly, and that goes beyond Malaysia, we see in Asia, but not, I mean, everywhere in the world where there is tensions, we see a huge increase of interest in air defence and surveillance.

Pretty much all the countries are focusing first on air surveillance, air defence, because they want to protect their maritime and aerospace. And even in small countries, for example, before Malaysia was in charge of Ukraine and a Caucasus country, Georgia. And even Georgia, which is probably a size, half of Johor, a very small country, they have decided to stop their army, stop their navy, and they just focus on air defence and they bought GM 400 in order to ensure their air defence.

So I think the need all the countries have today is to get very accurate and live picture of their air and maritime space. And so why am I telling you that? Because we see radars, long-range radars and air defence pretty high in every country’s priorities. So will, in Malaysia, those upgrades or those new radars will be on top of the list? I don’t know yet, but I think it will make sense to replace them in the short term, for sure.

I think the priority for Malaysia is really to, as a maritime country, to get a very good picture of their border, of their aerospace and maritime space and the context that we perfectly know, the incursion from foreign countries in their sovereign space. So for that, strengthening the surveillance, strengthening the border protection is usually going with acquiring sensors and radar is the ultimate sensor in terms of surveillance. So I think it will make a lot of sense to replace those very old radars.

And of course, we are more than ready to support the Air Force to supply additional radars. Because the more we are able to do, the more transfer of knowledge, localisation we can do. To give you an example, in Indonesia, we sold, last year, 13 GM-400s.

And of course, when you have such numbers, we are already creating a production capability on-site, maintenance centre, we have set a joint venture with our Indonesian partner. So yeah, when we are talking about quantity, we are able to do even more in terms of localisation. And this is what we have done for the communications, for example, because we have long term plus big quantity, more than 10,000 radios.

This is also what we’ve done with the Navy, where we have created our maintenance centre because we have quite a large presence also. And we are more than happy to do it in the Air Force for the radar.

You were talking earlier about the Gempita systems radios and all. Has a maintenance contract been signed for that, or is this an ad hoc kind of thing?

So, today, of course, the (procurement) programme has been terminated, I think, end of 2021. So now, some vehicles are still under warranty, some not. So we have a support framework, which is more as-and-when, I would say, approach.
But with DefTech, we have a team there. We have even a radio lab here in KL in order to test the radios. We are working very closely to the Army to make sure that their Gempita are fully, first, are fully maintained and supported, and of course, are fully interoperable with the others.
So that’s why also we are working with different players for the future vehicles, AV4, ADNAN, HMATV, all those vehicle programmes. We are making sure full interoperability with Gempita will be ensured. That’s our key priority to make sure that the Army can use in a very safe and efficient mode all their vehicles and within the vehicles, all their systems and communication.

And in the meantime, like on the radar, if we are able to have a bit more quantity, we could even reinforce our presence. So we already have a very strong local presence in the Army for vehicle programmes, but we could even transfer more and do even more in terms of localization. And I think, once again, it’s very important to understand that for us, working with partners is not a political choice or a marketing choice, it’s our DNA.

Even in France, in our market, we are working with local partners always because we need to work with partners to integrate our system, to better understand what the user wants, to make it safe and in the meantime, very user-friendly. So by definition, we are working with partners. So that’s something that we are doing because we believe it’s the only way to work in defence for system suppliers and system integrators like us.

And obviously, the more consistency we have in procurement, the better we can develop local presence with our partners. We have done it with DefTech for vehicles, we have done it with Global Komited in air surveillance and air defence, we are doing it with ADS Sdn Bhd in radios. So the objective is to reinforce even more our local presence. Thales Malaysia on one side and our partners on the other side.

How much do you think you lost? Not money terms, but in terms of localization when the JV was with STE had to be divested.

So there are, I would say, three aspects. The first is the relation with the customer. The second is the skills technical aspect, third financial aspect. The first priority really was to ensure the Army even without Sapura, we will provide the same exact level of service will be maintained. The local presence and the transfer of technology are maintained. We spoke with the Chief of Army and the Defence Minister that we will be maintaining our commitment. We are working with ADS for the maintenance of the current radios and the future.
As for the divestment, we took the industrial tools, the IP, Sapura took the cash. As we took the tool and maintenance facilities, we did not lose any capabilities. The last point, financial aspect, I don’t think we lose anything, the first radio tender in 2023, we won the contract and the delivery was concluded within one year of the contract. We are still competitive in the radio market even though we no longer with the JV.

Do note that the interview was done before the tender for the eight VSHORAD GBAD was published in Eperolehan.
–Malaysian Defence.

If you like this post, buy me an espresso. Paypal Payment