DSA 2012 - MINDEF Signs RM4bil in Deals

Five contracts and 15 memorandums of understanding (MoU) worth a total of more than RM4bil have been signed between the Defence Ministry and several local and foreign companies in conjunction with this year's Defence Services Asia (DSA).


Five contracts worth RM357.2mil were inked between the ministry with four local companies and a Russian firm.

The five companies are SME Ordnance Sdn Bhd, Destini Prima Sdn Bhd, Teguh Hiasan Sdn Bhd, Santun Jendela Sdn Bhd and Russia's Rosoboroexport.


The contracts involve the supply of ammunition, delivery of 40mm anti-tank rocket-propelled grenades, light anti-tank weapons and grenade dischargers for the Malaysian army.


The Royal Malaysian Air Force will receive 35 AVV-AE air-to-air missiles for its fleet of Sukhoi SU-30MKM fighter aircraft.

Six MoUs were signed in relation to the supply of foodstuff, water hydration systems, flight simulators and unmanned aerial vehicles between several companies and Science and Technology Research Institute for Defence and the National Defence University of Malaysia.


Five other MoUs related to defence programmes were signed between Malaysia Defence & Security Technology Park developer Masterplan Consulting Sdn Bhd and local and foreign companies.

Minister Datuk Seri Dr Ahmad Zahid Hamidi, who witnessed the signing ceremonies, said the value of the agreements at this year's DSA was lesser than the amount signed in previous exhibitions.


“We are not making new assets purchases because the Government wants to concentrate more on social development programmes,” he said at the four-day exhibition at Putra World Trade Centre here.

Dr Zahid added that the Malaysian Defence and Security Technology Park in Sungkai, Perak, had received more than 500 enquires from foreign investors.


He said the park, the country's first defence hub that will bring together all defence and security-related activities in one place, was offering attractive tax incentives.