As Putrajaya cuts expenses, Home Ministry buys 2 choppers in RM500 million deal

Two Ausgusta Westland AW139 helicopters as well as eight units of AG JAWS Arrmour Personnel Carrier (APC) will arrive in the country by year end. – Wikipedia pic, October 22, 2015.

Putrajaya today signed an agreement to buy two Agusta Westland AW139 helicopters even as it cuts down on subsidies and expenditure amid the dwindling economy.

Home Minister Datuk Seri Ahmad Zahid Hamidi witnessed the signing of the contracts, memorandum of understanding and letters of acceptance, worth RM535.7 million at the General Police and Special Equipment Exhibition and Conference (GPEC) Asia today.

"Eight units of AG JAWS Armoured Personnel Carrier (APC) will also arrive in the country by year end," he said.

Early this year, Prime Minister Datuk Seri Najib Razak announced the postponement of several projects including the National Service for a year to save RM400 million as part of the government's rationalisation plan.

He said the government's expenditure was expected to reduce by RM5.5 billion through a re-evaluation of priorities in expenses.

Budget 2015, unveiled last October, had a forecast expenditure of RM273.9 billion and income of RM235.2 billion. This was based on the price of oil at USD100 per barrel.

The decline in oil prices has led to a massive downfall of the ringgit as Malaysia is a major oil exporter.

Economists have said that there was a need for Putrajaya to relook its budget.

- TMI