Military assets: negotiate directly with OEMs, suggests veteran group

KUALA LUMPUR – The government’s approach of acquiring military assets through direct negotiations with the original equipment manufacturers (OEMs) is the best step to ensure that no party earns excessive commissions in the procurement process.

Veterans Association of Malaysian Armed Forces (PVATM) president Capt (Rtd) Datuk Sharuddin Omar believes that the asset acquisition agreement between the government and OEMs should also be implemented through direct negotiations even though the manufacturers appoint an agent to represent them in the country.

“This means that the appointed agent is under the OEM and has nothing to do with the Malaysian government. The question of commission or payment for the service is all under the OEM. The government only negotiates with OEMs.

“The appointment of local consultants by OEMs must also comprise local companies with experience and expertise to provide the best advice according to the needs of consumers and comply with government policy,” he said recently.

He said the agreement between the government and OEMs should also take into account the advantages that will be enjoyed by local companies and the people, especially veterans who have various expertise in aspects of defence equipment and technology. 

Sharuddin also feels that the revamp of the military asset procurement system should be thoroughly scrutinised by the government so that leakages do not occur and to ensure good governance.

He said the government also needs to get the views of the Malaysian Armed Forces commanders regarding the matter in order to identify the assets and specifications needed in efforts to strengthen the national defence.

On July 31, Prime Minister Datuk Seri Anwar Ibrahim said the MAF asset acquisition system needed to be revamped to ensure outside parties can no longer rake in excessive commissions.

Anwar said the revamp must be done as the preparedness of national defence assets, such as ships, aircraft and tanks, is not coordinated and in line with economic growth and Malaysia’s geopolitical and strategic position. – Bernama, August 4, 2023