Thursday, April 22, 2010

After Submarine here comes Overpriced Armoured Personnel Carriers

The Defence Ministy yesterday signed a Letter of Intent (LOI) worth RM8 billion with Deftech for the development, manufacture, supply and delivery of 8X8 Armoured Personnel Carriers for the Malaysian Army at the Defence Services Asia (DSA) 2010 exhibition and conference at the Putra World Trade Centre here.

Defence analysts who declined to be identified said based on the number of vehicles to be procured and the contract price, each vehicle would cost RM34 million, a much higher figure than if the government decided to purchase comparable 8X8 APCs “off-shelf”.


Rosmah.. oops Rosomak produced by Naza Bumar, a subsidiary of Naza Defence
artical related please read here


DSA 2010: Poser over RM8 billion for Deftech

Questions arise on the sum for 257 armoured personnel carriers for the Malaysian Army

MARHALIM ABAS

Wednesday, April 21st, 2010 10:58:00

KUALA LUMPUR: Defence analysts were taken aback by the huge amount to be paid for some 257 8X8 armoured personnel carriers (APCs) to be developed and built locally by DRB-Hicom Defence Technologies Sdn Bhd (Deftech).

The Defence Ministy yesterday signed a Letter of Intent (LOI) worth RM8 billion with Deftech for the development, manufacture, supply and delivery of 8X8 Armoured Personnel Carriers for the Malaysian Army at the Defence Services Asia (DSA) 2010 exhibition and conference at the Putra World Trade Centre here.

Defence analysts who declined to be identified said based on the number of vehicles to be procured and the contract price, each vehicle would cost RM34 million, a much higher figure than if the government decided to purchase comparable 8X8 APCs “off-shelf”.

For example, one analyst cited a German-built Boxer Multi-Role Armoured Vehicle costs around RM2 million each when the country purchased 200 of the APCs in 2006. The base price for which the United States Army paid for its Stryker 8X8 APCs is around RM6.2 million each. The Boxer’s development cost exceed RM10 billion, however, the US Army ordered more than 2,300 Strykers, the analyst noted.

Defence analyst Dzirhan Mahadzir, however, stressed one needs to compare the development costs of the British Future Rapid Effects System (FRES) before making assumptions on the the Malaysian 8X8 APC contract.

The FRES programme cost the British some RM22 billion before it was cancelled in 2008. The project, including procurement and whole-life support, was expected to cost another RM40 billion. The US did not spend a huge amount on the development of the Stryker as it was developed from the MOWAG Piranha APC.

Moreover, with an order book of more than 2,000 vehicles, the overall procurement cost was drastically lowered.

The Malay Mail was informed the 8X8 APC project was designated as a national project to transform the local defense industry from “mere agents to developing a sustainable industry capable of developing and manufacturing world-class arms”, and the cost of the Malaysian 8X8 APC is expected to be lower in future when more are ordered by the government or if future export orders are realised.

Deftech CEO Abdul Harith Abdullah, in a separate Press conference, said the cost of the contract includes the manufacturing and other costs associated with the production of a new combat vehicle.

The Malaysian-developed APC is being built from the PARS APC produced by FMC-Nurol Defense System of Turkey in co-operation with the US company, General Purpose Vehicle.

The prototype APC is expected to be delivered for testing to the Malaysian Army by next year. Deftech is to build 12 variants from the base vehicle, including personnel carrier, anti-tank weapon carrier, command and control and anti-aircraft weapon vehicles.

Deftech is also co-operating with Denel of South Africa to build a two-men turret for the APC while Sapura Thales is expected to become the systems integrator.


The Malay Mail

Followers

Archive

Related Posts with Thumbnails