Malaysian Defence Minister Datuk Seri Khaled Nordin defended the government's decision to lease 28 helicopters, arguing that it's a faster and more financially viable option compared to purchasing them outright. He explained that leasing avoids upfront payments and allows for the acquisition of modern assets without straining the government's finances. Nordin cited a 2017 study showing the Air Force's helicopter readiness level was only 43% compared to the required 70%, highlighting the need for upgrades.
KUALA LUMPUR: Leasing helicopters will ensure the country will obtain defence assets faster compared to purchasing them and is also more financially viable, says Defence Minister Datuk Seri Khaled Nordin.
"On the other hand, if we choose the leasing approach, the government will not need to pay an advance, or make progress payments, or incur capital expenditure," he said during his ministerial winding up speech of the motion of thanks of the royal address in the Dewan Rakyat on Thursday . Khaled also said that the government would only start paying its financial commitments when they receive the helicopters."If we were to purchase these assets outright, we would need to start incurring costs and make payments now, even though we have not yet received them," he said.
He explained that the readiness level of aircraft owned by the Air Force between 2011 and 2015 was not optimal and did not meet set standards as shown in a Universiti Teknologi Malaysia study in 2017.
DEFENSE PROCUREMENT HELICOPTER LEASING COST SAVINGS DEFENSE BUDGET AIR FORCE READINESS
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