Anwar Defends RM16 Billion Helicopter Lease Deal, Highlights Italian Government’s Assurance

KUALA LUMPUR (Nov 28): Prime Minister Datuk Seri Anwar Ibrahim revealed in Parliament today that the RM16 billion contract to lease 28 Leonardo helicopters over 15 years comes with an implicit assurance from the Italian government, ensuring transparency and value for money in the deal.

Anwar addressed criticism over the contract’s transparency, emphasizing that it was awarded following a government-to-government negotiation based on submitted proposals. He highlighted a conversation with Italian Prime Minister Giorgia Meloni during the G20 Summit in Brazil, where she assured him of Leonardo’s commitment to delivering top-tier service.

Leonardo SpA, in which the Italian government holds a 30% stake, is a globally recognized aerospace, defence, and security company.

“We ensured that the negotiations were transparent and conducted directly between governments, without intermediaries or agents. Consolidating the requirements of multiple Malaysian agencies into a single agreement allowed us to streamline discussions and control costs effectively,” Anwar stated.

The lease-to-own contract, announced on Nov 20 by Defence Minister Datuk Seri Mohamed Khaled Nordin, includes an option to purchase all 28 helicopters for a nominal RM1. Under the agreement, Leonardo will supply:

12 helicopters for the Royal Malaysian Air Force,
4 for the Malaysian Maritime Enforcement Agency,
2 for the Navy,
7 for the Royal Malaysian Police,
2 for the Fire and Rescue Department,
and 1 for the Prime Minister’s Department.
Additionally, the contract includes provisions for maintenance, repair, operational training, and technology transfer, including parts manufacturing in Malaysia.

This marks the second major leasing initiative under Anwar’s administration, following the Ministry of Transport’s August announcement of a RM10 billion rolling stock lease for 62 passenger train sets with China.

“Leasing is a strategic choice to avoid burdening the nation with hefty upfront costs,” Anwar explained. “Even if an outright purchase appears cheaper, maintenance costs often exceed the initial investment. By opting for leasing, we gain not only the assets but also comprehensive support, training, and local technology development.”

The leasing model aligns with the government’s focus on cost-efficiency and long-term sustainability, underscoring its commitment to managing public funds responsibly.

-AsiaNewsToday

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