Gov’t Saves 20 Pct On Maintenance Costs With Local Expertise – Mohamed Khaled

Butterworth: The Local Planned Maintenance 12 Years (LMP12Y) project, which utilises local companies' expertise to maintain aircraft domestically, helps the government save 20 per cent on military asset maintenance costs compared to servicing them overseas. Defence Minister Datuk Seri Mohamed Khaled Nordin stated that the mandatory maintenance of FA-18D aircraft at Butterworth Air Base also helped his ministry save time, taking only a year compared to a longer period if sent abroad.

According to BERNAMA News Agency, this initiative indirectly boosts the local aerospace industry by enhancing the capabilities of companies involved in Maintenance, Repair and Overhaul (MRO) for aircraft and fighter jets. More than 70 per cent of the work is carried out by local companies with a 100 per cent local workforce, contributing to the 20 per cent cost saving and faster completion time compared to international servicing.

Mohamed Khaled emphasized the importance of maintaining aircraft to extend their lifespan. He noted that although the government had previously decided to carry out maintenance overseas, the COVID-19 pandemic necessitated a change in approach.

In another development, Mohamed Khaled addressed allegations of misleading explanations regarding the RM16 billion lease contract for 28 helicopters over 15 years. He clarified that Weststar Aviation Services Sdn Bhd is a major company providing helicopter services in Malaysia and abroad, with operations in Saudi Arabia and involvement in the oil and gas sector in Timor-Leste. The company also provides helicopter services to Petronas and possesses strong financial capabilities.

Tanah Merah MP Datuk Seri Ikmal Hisham Abdul Aziz had earlier claimed that Mohamed Khaled's explanation was misleading and sought clarification on the lease agreement.