Adding New Meaning to Daylight Robbery

In February this year, Malaysians were aghast when Defence Minister Datuk Seri Dr Ahmad Zahid Hamidi announced that the government agreed to allocate RM6 billion to build six second-generation patrol vessels for the Royal Malaysian Navy. The rationale given for the expenditure was to "boost the economy while benefiting 632 vendor companies". The Defence Minister clarified that they would ensure that "at least RM2bil of the allocation will benefit these vendor companies which are strategic partners of Boustead Naval Shipyard Sdn Bhd".

Evidently, there is big $$$ in defense.

According to Wikipedia:

It is estimated that yearly, over 1.5 trillion dollars are spent on military expenditures worldwide (2.7% of World GDP). This represents a decline from 1990 when military expenditures made up 4% of world GDP. Part of this goes to the procurement of military hardware and services from the military industry.

The combined arms sales of the top 100 largest arms producing companies amounted to an estimated $315 billion in 2006. In 2004 over $30 billion were spent in the international arms trade (a figure that excludes domestic sales of arms).

Today, the Defense Security Cooperation Agency notified Congress today of a possible Foreign Military Sale to the Government of Malaysia for 20 AIM-9X-2 SIDEWINDER Block II All-Up-Round Missiles and associated equipment, parts, training and logistical support for an estimated cost of$52 million.

According to the press release issued by DSCA HERE (inaccessible in Malaysia but has been re-posted HERE), the Government of Malaysia has requested a possible sale of:

• 20 AIM-9X-2 SIDEWINDER Block II All-Up-Round Missiles
• 8 CATM-9X-2 Captive Air Training Missiles
• 4 CATM-9X-2 Block II Missile Guidance Units
• 2 AIM-9X-2 Block II Tactical Guidance Units
• 2 Dummy Air Training Missiles
• containers, missile support and test equipment, provisioning, spare and repair parts,
• personnel training and training equipment, publications and technical data,
• U.S. Government and contractor technical assistance and other related logistics support.
• The estimated cost is $52 million.

This proposed sale will contribute to the foreign policy and national security of the United States by helping to improve the security of a friendly country that has been, and continues to be, an important force for political stability and economic progress in East Asia. CLICK HERE for more.

In mid-August this year, The Australian reported that AUSTAL has won a $330 million contractto produce eight new patrol boats for the Australian customs service. The total value of the project is $330 million, including a $280 million design and construction contract and an In-Service Support contract worth $50 million.

The contract is for the design, construction and through-life support of eight Cape Class patrol boats for the Australian Customs and Border Protection Service.

Comparatively, it appears that the Australians can build EIGHT NEW PATROL BOATS at AUS$330 million (RM1.016 billion) @ 127 million per boat while in Malaysia, six new patrol boats cost us SIX BILLION RINGGIT at RM1 BILLION per boat. Even if the patrol boats from both countries are different in technology or design, surely the difference cannot be that glaring?

CLICK HERE to see more details and photographs of vessels.

Another scandal would be the infamous Scorpene submarine scandals which has been extensively reported HERE by Asia Sentinel. MP Tian Chua raised many pertinent questions at the recent Ops Scorpene Fund Raising Dinner held in Penang. Of course, we cannot deny national security is of prime importance but one wonders why the government has spent so much on two submarines which we know at one point in time could not dive, and which came without spare parts, maintenance services and sans missiles and torpedoes until 2013. Read Beyond the Submarines.

Malaysians, we are not talking about millions any more but BILLIONS. BILLIONS of RINGGIT, not rupiah or pesos! And billions of the rakyat's money, mind you!!! What could be the trigger?

In a recent interview with ABC News (Australia), RPK said:

Corruption is not under control. You just have to talk to any businessman, foreign or local, and they'll tell you horror stories about the problems they face.

And the only way to solve all these problems is to pay. And sometimes it's demanded of them. Before any approval is given they'll be told, you know you have to give me 20 per cent; you have to give me 30 per cent.

And there's been, okay you look at the most recent case for instance where Malaysian government is going to buy six patrol boats at a price of one billion each, one billion ringgit each. So we're talking six billion ringgit or roughly $AU2 billion for six patrol boats.

You can buy those same boats in the UK or even what the American coastguards are using and six of those boats cost only one billion, not one billion per boat.

Now why is the Malaysian government paying extra five billion on patrol boats when compared to even what the British and the Americans can buy it so much cheaper?

They don't offer any reason. They just say that these boats are special. These are coastguard boats. How more special can it be? Even a foreign company has marvelled at how can your country pay six billion for six boats when we only pay one billion for the entire lot?

Now tell me that's not corruption.

Looking at this scenario, I am reminded of the Chinese word for crisis and opportunity. This site says:

The Chinese word for crisis carries two elements, danger and opportunity. No matter the difficulty of the circumstances, no matter how dangerous the situation, ... at the heart of each crisis lies a tremendous opportunity. Great Blessings lie ahead for the one who knows the secret of finding opportunity within each crisis.

And is that what we see today? Are some finding opportunities in pseudo 'crisis' situations that they may enjoy great blessings ahead?

And are we witnessing daylight robbery right under our noses?

- masterwordsmith