Thursday 17 February 2011

Defence cost not exorbitant

A lack of understanding on emerging defence needs is among the factors causing a misconception over defence-related purchases announced by the Government.
Former Royal Malaysian Navy armada systems head Admiral (Rtd) Abdul Rahim Jaafar said the issue became more complicated when some felt that such purchases were a waste of public funds.
“Most people do not understand because they are not in this line. Whether the price is reasonable or not depends on the equipment and weapons installed.
“The latest equipment for warships are pricey, especially if they are purchased from another country,” he said yesterday.
He was commenting on DAP Petaling Jaya Utara MP Tony Pua’s allegation in a local news portal that RM6bil to build six Littoral Combat Ships (LCS) was 870% more expensive than what was paid by other countries for similar vessels.
Abdul Rahim said making comparisons with other countries would be difficult as the real cost may not be included, such as the Government Full Expenditure (GFE).
He said Malaysians should take Singapore as an example whereby it was willing to allocate a large amount of expenditure to ensure the country’s defence system was ready for challenges in the new millennium.
For Malaysia, stepping up the capability of LCS would not only protect the country from various threats such as piracy, violence and territorial disputes but also natural resources like oil fields.
Meanwhile, National Defence University of Malaysia centre for defence and international security studies director Assoc Prof Lt-Kol Ahmad Ghazali Abu Hassan said the Government’s purchase price could not be evaluated at a glance because various aspects were involved.
“We cannot say whether the buy is worth it or not because we don’t know what the ship is equipped with.
“If it’s furnished with sophisticated equipment, it will definitely cost more.
“We need to look at the package selected, including training and more,” he said.
Ahmad Ghazali said buying the LCS was a smart move as the country could not be complacent about its defence system.
He added that the system must always be improved by taking into account challenges that might arise in the future

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