Govt inks RM4 billion deals at LIMA 2019


Looi Sue-Chern

The Defence Ministry inked seven procurement contracts with various firms, witnessed by Minister Mohamad Sabu. – The Malaysian Insight pic by David ST Loh, March 28, 2019.

PUTRAJAYA signed more than RM4 billion worth of deals with various companies at the 2019 Langkawi International Maritime and Aerospace (LIMA) exhibition today.

Most of the procurement and industrial collaboration contracts, totalling RM3.67 billion, are for maintenance, repair and overhaul (MRO) services for defence assets.

Agreements and memoranda of understanding make up the remaining RM500 million.

The Defence Ministry inked seven procurement contracts with various firms, witnessed by Minister Mohamad Sabu.

Among the contracts are Norway’s Kongsberg Defence and Aerospace’s deal to supply and deliver naval strike missiles as surface-to-surface missiles for the navy, and Boustead Naval Corporation’s refitting programme for two submarines.

Mohamad also witnessed two MoU exchanges involving his ministry, while Transport Minister Anthony Loke witnessed four.

Among the MoUs were Politeknik Banting Selangor’s on-the-job training agreement with Air Asia Bhd and strategic collaboration with Malaysia Airlines Bhd, and Universiti Malaysia Terengganu and International Green Training Centre’s cooperation in developing and offering sustainable logistic training programmes and human capital development in the maritime sector.

The ceremony also saw eight letters of intent (LOIs) and 10 letters of acceptance (LOAs) for various procurement contracts handed out.

Among the LOIs are Airod Sdn Bhd’s maintenance contract for air force aircraft and equipment; Boustead Naval Shipyard’s integrated logistic support and trial aid littoral combat ship package, and MRO services for navy vessel KD Lekir; Rosebank Engineering’s MRO services for the air force’s Hornet, Blackhawk, Nuri and Hercules aircraft components; and, Airbus Military Sociedad Limitada’s in-service support for the air force’s A400M aircraft.

The LOAs included Serbia’s Glotec Limited’s MRO, defect investigation and testing services for the air force’s Viper engine; Australia’s T.A.E. Gas Turbines’ engine maintenance, test cells and associated services for the air force; DML Technologies’ spare parts supply, maintenance and repair services for the navy’s local warning radar; and, Grade One Marine Shipyard’s maintenance, repair and modification services for navy vessels.

Defence Minister Mohamad Sabu witnessed the signing of seven procurement contracts between the ministry and various firms at LIMA today. – The Malaysian Insight file pic, March 28, 2019.

Mohamad described the deals signed as “very encouraging”.

He said the government’s emphasis is on keeping defence assets in good shape and ready for deployment.

“Our focus, as you can see from the contracts signed, is on MRO. Buying new assets is in the planning stage.

“The government will continue to consider the procurement of new strategic defence assets, taking into account current technological advancements and non-traditional security threats,” he told reporters after the ceremony.

Earlier, Mohamad launched the 17th Defence Services Asia Exhibition and Conference 2020 (DSA) at Langkawi’s Mahsuri International Exhibition Centre.

The event, which is one of the leading defence services shows in the world, is scheduled to take place from April 20 to 23 next year at the Malaysia International Trade and Exhibition Centre in Kuala Lumpur.

Organiser DSA Exhibition and Conference expects 1,500 companies from 60 countries, delegates from 45 nations and 50,000 trade visitors from 70 countries to attend.

Mohamad said the exhibition will bring together industry leaders, governments, and military, defence and homeland security agencies from across the world to build mutual trust, and take part in collaborations and technology exchanges.

“It will showcase the latest defence technologies and services, and serve the regional and global agenda to address security concerns like terrorism, cybersecurity, humanitarian and disaster relief, peacekeeping operations, battlefield health and critical asset protection.” – March 28, 2019.


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