26-04-2006: SME Ordnance in RM70m rifle deal
By Alfean Hardy
SME Ordnance Sdn Bhd has been given a letter of intent (LOI) by the
Malaysian government for the supply of 14,000 Colt M4 Carbine
assault rifles.
The contract, if finalised, would be worth about RM70 million and
the rifles would be assembled under licence in Malaysia by the
company.
The M4s will replace the armys 15-year-old Steyr AUG rifles under
provisions already made in the Ninth Malaysia plan (9MP).
Eventually, the government is looking to buy more than 100,000 M4s,
but in stages.
The LOI was among RM310.4 million worth of contracts and letters of
acceptance (LOAs) signed at the Defence Services Asia 2006
exhibition in Subang on April 26.
The largest was the RM213.4 million contract signed between the
government and Switzerlands Pilatus Aircraft Ltd for 10 PC-7 Mk II
aircraft.
Other contracts include a five-year deal worth RM152 million
between Satang Jaya Sdn Bhd and the government for safety and
survival equipment, and a five-year contract between the government
and Sapura Defence Sdn Bhd worth RM110.3 million for the
maintenance of the air forces simulator systems.
The RM310.4 million does not cover the four long-term contracts
signed between the government and Satang Jaya, Zetro Aerospace and
Sapura Defence.
so it is confirmed that they are gonna use the carbine! 