SHAH ALAM: Reuters is reporting that BAE Systems will provide Malaysia a UK government-backed financing deal if it decides to replace its fleet of combat jets with the Eurofighter Typhoon, senior company officials said.
In the meantime, a UK publication, the Sun, is warning that UK risks losing all defense contracts with Malaysia due to an EU plan to ban the import of palm oil into Europe
KUALA LUMPUR (Reuters) – BAE Systems will provide Malaysia a UK government-backed financing deal if it decides to replace its fleet of combat jets with the Eurofighter Typhoon, senior company officials said.
Malaysia has for several years been weighing France’s Rafale jet and the Eurofighter Typhoon, built by a European consortium including Britain’s BAE, as it looks to buy up to 18 jets to replace its Russian MiG-29s – most of which are grounded.
The contest, potentially worth over $2 billion, is one of the biggest fighter deals under consideration in Asia, although a decision has been delayed due to upcoming national elections and a shift in Malaysia’s focus towards upgrading aerial surveillance capabilities.
“We have an offer on the table…It’s competitively priced and we have offered UK government financing so the Malaysian government can spread the payment over a longer period,” Alan Garwood, the Group Business Development Director for BAE Systems said in an interview in Kuala Lumpur.
“We can offer training, local partnership and lots of jobs,” he added.
Financing would be provided via the UK Export Finance export credit agency.
For the full story go here
The Sun story.
BRITAIN risks losing £5billion worth of defence contracts to France amid a looming EU trade war.
The two countries are bidding to sell fighter jets and other kit to Malaysia in a deal which would safeguard 20,000 jobs.But the move has been thrown into jeopardy to ban imports of palm oil from the would-be buyers.
Malaysian minister Mah Siew Keong has branded it a “hate campaign” and has threatened a tit-for-tat boycott of European goods.
France, which wants to sell its own Rafale fighters to Kuala Lumpur, has outflanked Britain by promising to oppose the EU ban.
Mr Mah travels to Britain this week to demand our support – but his arrival has sparked a Cabinet rift.
As for the Sun story go here
–Malaysian Defence
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View Comments (57)
UK is one of the few countries that against palm oil discrimination and they're going to exit the EU so the EU palm oil thing is irrelevent to them
If we really take up the $2 billion offer, we will put all other programmes, like the rm2.6 billion (usd666 million) MPA programme in jeopardy. IMO, just say no to any new MRCA whether it is typhoon, rafale or gripen for now, and get the MPA done first.
we are not going to wait for "brexit" to choose and buy
our fighter jet...
are we?
At present, on the political level the Rafale is the clear favourite but who knows, in the future it might be politically expedient to buy British. The MRCA won't necessarily effect the MPA programme as it's still at minimum 2-3 away and hasn't even been officially approved; unlike the MPA programme for which approval has already been gained. Other factors involving the MRCA is that it might come from a special allocation or come under a long term loan; which of course has to be repaid but will probably not effect any present procurement plans which have already gained approval by the EPU.
Pembangkang will have a lot of bullets after this and the good dr will surely condemn najib again. It's will be a big political gamble by najib
Azlan and Marhalim:
With all the hype about new jets to be procured by Malaysia, can I ask your opinion(s) on which aircraft (non networked in that case, and either Rafale or Eurofighter) on an individual basis is better for Malaysia?
Reply
Super Hornet
I think it depends on next GE result.
If current gov stay in power i predict 99.9% will go for rafale..
If power changing hand, i believe super hornet will be joining in.
Lease/loan offer means they may knew that they are not on the list.
Just my personal opinion..
Reply
The French also offers a similar deal
I like how desperate the Limeys are to secure a deal for their sketchy wares, offering "financing". It is not as if these loans is free and no burden to Malaysian taxpayers in the future or make it okay to purchase the overpriced and glitchy Typhoon. Not to mention that RMAF sort of admit that a cheaper LCA will be able to perform the air patrol and light attack role of the MRCA. There are more pressing national deeds than buying new glitzy toys to please (and throw a financial lifeline to) the old colonial slave master. If Europe want to ban palm oil, good news for Malaysians, as we can finally kill off delusion of adopting either of these overpriced Eurocannards at considerable financial consequences for the nation and move on to search for more realistic and affordable offerings. Regardless of the election results, I hope the next government will be more open and put major arm purchases under tighter scrutiny and seek public opinions/approvals on the necessity of such purchase.
Strategically the the French will win because they are still in the EU and will block any ban. With Brexit, Britain will not have a say anymore. Haven’t the French also offered a long term loan from the government?
Reply
Yes the French also offered similar loan deal from their Government.
kerberosWXIV
"Regardless of the election results, I hope the next government will be more open and put major arm purchases under tighter scrutiny and seek public opinions/approvals on the necessity of such purchase."
about openess is no comment but please bro,dont suggest this. to me the public is not well verse in defense procurement and business. a lot of them want to assemble the MRCA in our country(without thinking or knowing economic of scale),buying powerful ordinance or weapon from china or india(based on youtube posted by god know who without thinking the commonality) and dont know the contract based on dollar and not RM. the best part is i once follow a discussion about our submarine at kedai kopi and most of them blame the gov for not buying nuclear sub and choose scorpene.i almost cried hearing what they discuss.
about the palm oil please dont antagonize more. it take years to set up the production line,supply line and man power to supply there which i am sure some other country are eager if Malaysia decide to abandon it. just relax bro.
i just hope LCA and MPA get priorities than MRCA since that dream is far fetch.