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THE government opted to lease 28 AugustaWestland 139 helicopters as part of a strategic initiative to optimise spending, said Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said.
She said the decision to spend RM16 billion to lease the helicopters stems from the need to replace ageing assets, enhance readiness levels, and address fiscal considerations.
In a parliamentary written reply, she said many helicopters used by government agencies, including the Malaysian Armed Forces, were between 12 and 32 years old.
These helicopters are used for search and rescue operations, humanitarian and medical services, as well as for security and military needs, among others.
"All costs arising during the supply period, including crew training expenses, will be borne by the concessionaire until the assets are handed over to the government,” she said.
Mumtaz Nawi (PN-Tumpat) had raised concerns over the RM16.5 billion allocation for the lease.
In December last year, the ministry signed an agreement with Weststar Aviation to supply and maintain 28 helicopters manufactured by Italian aerospace and defence contractor Leonardo SpA, under a public-private partnership contract for RM16.5 billion.
The helicopters were picked to replace the American-made Sikorsky S-61 or Nuri helicopter.
Under the agreement, the government is also given the option to purchase each helicopter at a nominal price of RM1 at the end of the concession period.
Azalina also cited a study by Universiti Teknologi Malaysia, which revealed that between 2011 and 2015, the readiness level of Royal Malaysian Air Force aircraft was only 43%, well below the required minimum of 70%.
She added that the leasing involves 28 helicopters of various models with mission-specific equipment for the Malaysian Army, RMAF, Royal Malaysian Navy, Fire and Rescue Department, the Prime Minister's Department, and police.
"This leasing approach is also a common practice for managing strategic and security assets in developed countries such as France, Canada, and the United Kingdom," she said.
Defence Minister Datuk Seri Mohamed Khaled Nordin had said the government's decision to lease 28 helicopters for RM16.6 billion was made in an orderly manner and based on necessity. – February 13, 2025