Malaysia
Austerity drive, politics clipping RMAF’s wings, says analyst
Malay Mail

KUALA LUMPUR, Feb 11 — Putrajaya’s aim to trim its chronic budget deficit and an increasingly vocal opposition are forcing the country to defer updates to existing military assets that are already behind schedule, according to an international aviation news site.

Some programmes such as the Royal Malaysian Air Force’s (RMAF) plan to retire some long-serving combat aircraft have already been put on hold and may not be taken off the back burner before 2016, when the next Malaysia Plan is effective, Dzirhan Mahathir wrote on Aviation International News Online (AINOnline).

“A combination of public dissatisfaction over the cutting of government subsidies and the government’s need to balance an increasing deficit has made spending on military procurement politically unviable at the moment,” the Malaysian defence writer said.

Such was the government’s unwillingness to spend that even long-term repayments and leasing offered by bidders vying to supply the replacement to the RMAF’s existing fleet of MiG-29s was unable to convince Putrajaya to loosen its purse strings, Dzirhan added.

Of the 18 MiG-29s purchased, only eight remain operational. These were due to be decommissioned in 2015 but must now remain in service until approval for a replacement multi-role combat aircraft (MRCA) is obtained.

According to Dzirhan, the RMAF has been trying to keep the MiG-29s in the air by restricting them to only operational duties and missions.

The postponement of the MRCA contract has consequently delayed the procurement of trainer aircraft as these would be influenced by which of the four defence contractors — Boeing, Dassault, BAE Systems and Saab — secures the deal.

Last year’s Sulu incursion in Lahad Datu, Sabah also made a case for attack helicopters in the country’s defence arsenal, in which the Sikorsky S-61 Nuri — itself due to be replaced — has been pressed into service as a stop-gap measure.

“However, the chief of the [Royal Malaysian Navy], Admiral Tan Sri Aziz Jaafar, told AIN that the likelihood of funding for the ASW helicopters also may come about only in the timeframe of the 11th Malaysia Plan,” he wrote.

Another procurement that has fallen victim to the so-called “austerity measures” was for the airborne early warning and control (AEWC), when Putrajaya was said to have baulked at the outlay to buy and maintain the planes.

The MiG-29 were purchased during the early 90s and were due to be replaced owing to reported difficulties in obtaining parts and services to keep the Russian fighters, which were introduced in 1983, flying.

Since September last year, Putrajaya has embarked on aggressive cost-cutting measures after pressure grew for it to rein in a chronic budget deficit that traces back to the Asian Financial Crisis of 1997, and which has left Malaysia’s national debt at just below a critical legal ceiling.

Among others, the government has reduced fuel subsidies, removed the price control for sugar and increased the excise tax for tobacco. It also approved an increase to power rates.

The moves are blamed for rising inflation and cost of living hitting Malaysians, which have resulted in public protests and forced the government to expand measures such as the 1 Malaysia People’s Store (KR1M) to help the public afford daily necessities.

In 2008, the opposition parties of Pakatan Rakyat (PR) denied the ruling Barisan Nasional (BN) its customary supermajority in Parliament.

With their greater prominence in the legislature, the opposition lawmakers have been relentless in their criticism of Malaysia’s defence procurements, which they allege to be inflated due to corruption.

Among the deals targeted were the Defence Ministry’s purchase of armoured personnel carriers, offshore patrol vessels, and helicopters — all of which PR lawmakers demonstrated to be available for less than what Putrajaya paid.

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