Replacement of Malaysia MiG-29s Faces Future Budget Challenges

Source: http://www.defpro.com/daily/details/438/

defpro.com | The Malaysian Government has indicated that it intends to retire its entire fleet of MiG-29N interceptors by the end of 2010. The government is expected to save RM260 million ($75.68 million, €51.30 million) annually by phasing out the aircraft. Defence Minister Datuk Seri Dr Ahmad Zahid Hamidi said the money saved would be utilised to pay for the maintenance of other aircraft and systems which were still being used in the Royal Malaysian Air Force (RMAF).

He said the MiG-29N fighter jets would be phased out as it was difficult and costly to maintain some old components and systems for the fighter jets.

“The weaponry for the fighter jets has reached the end of its lifespan and extending the lifespan would be costly and would not be viable,” he told Parliament. Ahmad Zahid said this when replying to Datuk Abdul Rahman Dahlan (BN-Kota Belud) who wanted to know the rationale in phasing out the Russian-made MiG-29N jet fighters.

The minister said the RMAF planned to replace the MiG-29N fighter jets with the ‘Multi Role Combat Aircraft’ (MRCA) for air operations. “After the MiG-29N fighter jets have been phased out, their role would be carried out by the Sukhoi SU-30MKM which is among the most sophisticated long-range fighter jets,” he said.

The MiG-29N aircraft played the role of interceptor jets and 18 of the fighter jets were purchased for the RMAF in 1993. However, two of the aircraft crashed in 1998 and 2005.

The Malaysian decision marks the “end of an era”, as Malaysia was the first non-Soviet block country to acquire Russian combat aircraft. Malaysia is now expected to float a request for proposal (RFP) for 18 new-generation fighter aircraft to replace the MiG-29Ns. This may take the form of long-expected follow-on order for a second batch of F/A-18s (these would now be in the SUPER HORNET version), but thinking in Kuala Lumpur appears to be in favour of an open tender. Circulation of the RFP is expected sometimes next year after completion of a study on the Royal Malaysian Air Force’s fighter requirements. It seems likely that all major combat aircraft manufactures will be invited to submit their bids. Given the current emphasis on bolstering its indigenous defence industry, Malaysia would probably include not only the usual request for offsets, but also technology transfer and industrial partnership clauses.

In the meantime, Russia’s state arms exporter Rosoboronexport has already offered to buy back the remaining 16 MiG-29Ns and in turn supply the RMAF with a follow-on batch of six Su-30MKMs at what is described as a “fair price”.

The RMAF’s plans for the purchase of a new fleet of fighter aircraft are, however, facing very serious financial obstacles. The global economic downturn appears to have been a damper for the Malaysian defence procurement. Since 2008, Kuala Lumpur has been careful not to announce any major orders but rather proceed with ongoing commitments. The defence procurement budget is under strain, as the government focuses on economic recovery.

The 10th Five-Year Malaysian Plan (2011-1015), which is to the submitted to Parliament in June 2010, is expected to propose procurement and development funding to the tune of RM7 billion (some $1.6 billion) for the entire defence and security sector, with some RM5 billion being allocated for defence proper. It is further understood that nearly half the total amount will be invested in order to replenish war stocks (missiles, bombs and ammunition), with relatively little money being left for new procurement efforts. Also, at least 30 per cent of the available money will be reserved for purchases from the national defence industry. Clearly enough there is no way the purchase of 18 new-generation aircraft could be financed under these conditions.

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By Dr. Ezio Bonsignore, Editor-in-Chief of MILITARY TECHNOLOGY (http://www.defpro.com/daily/details/438/)