I got the full story from here
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COUNTRY BRIEFING - MALAYSIA - The
big push
Robert Karniol is JDW's Asia-Pacific Editor and is based in
Bangkok.
Additional reporting Dzirhan Mahadzir JDW Correspondent,
Kuala Lumpur
Much of the forthcoming Ninth Malaysia Plan, covering
2006-2010, should focus on putting new capabilities into operation
The Joint Force Command should be implemented during this period
Equipment priorities include moving from short-range to
medium-range coverage
As part of Malaysia's transition from a counter-insurgency force to
a conventional one, the country is looking to make a substantial
package of improvements ranging from intelligence capabilities to
personnel issues.
Robert Karniol reports
Following on from a concentrated period of acquisition activity,
the Malaysian armed forces (MAF) should focus much of the
forthcoming Ninth Malaysia Plan on putting their new capabilities
into service.
Malaysian Deputy Prime Minister and Defence Minister Dato' Sri Mohd
Najib Tun Abdul Razak (see Interview) speaks of a continuum dating
from the early 1990s, when he first held the defence portfolio.
This process, he said, centres on transforming the MAF to become a
balanced conventional force.
Admiral Tan Sri Dato' Sri Mohd Anwar Bin Hj Mohd Nor, the Chief of
Defence Force (CDF) since April 2005, concurs. "The Eighth Malaysia
Plan [covering the period 2000 to 2005] was mainly about bringing
the MAF towards equipping itself as a conventional force. It was a
transition from our earlier counter-insurgency warfare capability
and will overflow into the ninth [Malaysia] plan," he said.
The flurry of big-ticket procurements that characterised Malaysian
force development over the past five years was heightened by delays
in implementing several projects originally planned for the
preceding Seventh Malaysia Plan. These had been deferred because of
funding constraints brought on by the region-wide 1997 economic
crisis.
Major procurements included the MAF's first submarines,
first main battle tanks (MBTs) and multi-launch rocket systems
together with new armoured personnel carriers and multirole fighter
aircraft. The armed forces would like to see
this pace maintained, but independent analysts are less sanguine.
"Procurement spending will be reduced [under the Ninth Malaysia
Plan] due to heightened costs under the eighth plan, partly
resulting from a stronger euro," one source
asserted.
This transition to operational service suffered a delay when a
restructuring centred on establishing the Joint Force Command (JFC)
was put off pending deeper consideration. The JFC had been
due to assume operational control of the MAF from 6 September,
mainly along the Australian model, after just a year of
study. However, the required permanent billets have yet to
be funded.
Defence Minister Dato' Sri Najib told JDW that the JFC will be
implemented during the Ninth Malaysia Plan but Adm Tan Sri Anwar
points to several interim developments. "We are now internally
restructuring within our capabilities to look into joint ops," he
said. This was due to include the launch in late November
of the MAF's first joint task force covering Sabah state in Borneo.
A command-post exercise around the same period aimed to focus on
the joint tactical level for the first time.
Developments in the Five Power Defence Arrangement (FPDA) grouping
Malaysia and Singapore with Australia, New Zealand and the UK
complement this activity. This multilateral mechanism has been
shifting to stress joint operations since 2000 and is now
introducing elements relating to non-traditional threats. The FPDA
is working toward its first joint command post exercise in 2007 and
first joint field training exercise in 2011.
Another refinement involves at least partially activating the new
coast guard before year-end, which should relieve the navy of its
maritime-enforcement mission in internal waters and offshore to a
distance of 50 n miles. Legislation establishing the Malaysian
Maritime Enforcement Agency gained royal assent in June 2004; this
consolidates activities previously undertaken by several agencies.
Assets and personnel are being drawn from the navy together with
police, customs and fisheries departments.
Combat readiness
Admiral Tan Sri Anwar says that the Ninth Malaysia Plan
will also emphasise "enabling systems" intended to enhance combat
readiness. Another set of initiatives are geared to promote "the
best corporate management practices to improve the military",
including risk-management practices and the planned introduction of
"balance scorecards" to measure results from investments in
capability.
"I am setting up a study group on defence logistics, a complete
review of our current practices," said the CDF, to
illustrate the enabling effort. "It's going to be a massive
exercise. The study will take about a year and we'll implement it
over the [remainder of the] ninth plan."
Other priorities include initiatives to enhance
intelligence capabilities and a concentrated push to address issues
relating to personnel. The latter will include recruitment,
retention, training, education and remuneration. "It's the whole
package," said Adm Tan Sri Anwar. "For example,
during the ninth plan a lot of army camps will be
refurbished."
These and other initiatives are outlined in a directional statement
issued in September entitled the Versatile Malaysian Armed Forces
of the 21st Century (VMAF21). "This involves the development of
long-term force development plans, which include human resource
development; replacement, upgrading and procurement of new
equipment; and a new operations concept," the CDF explained.
"The new operations concept will require the MAF to operate
as a joint force [and] therefore requires integration and
development of information technology vital to the realisation of
network-centric warfare systems."
The VMAF21 appears to address, at least in part, issues left
unresolved when Malaysia aborted a strategic review of its defence
policy, which was initiated in 1998 and never finalised.
At the policy level, Malaysia is concurrently relaxing its
traditional hesitation over multilateral military activity outside
the FPDA framework. Indonesia, Malaysia and Singapore launched
co-ordinated naval patrols in the Strait of Malacca in mid-2004 to
better deter piracy and terrorism. In August these countries,
together with Thailand, expanded the programme with an agreement to
start joint air patrols, known as Eyes in the Sky (EiS).
>From Kuala Lumpur's perspective, analysts say, this
activity may be driven more by political objectives than security
concerns. Pirate attacks in the Strait are statistically
insignificant, with the International Maritime Bureau reporting
eight attacks during the first half of 2005 compared with 20 during
the same period in 2004, while there are more than 50,000 ship
movements through the Strait annually. Malaysia's EiS initiative is
mainly intended to stem any potential outside interference in
security affairs, some suggest.
Policy shifts
Two other developments are, perhaps, more indicative of a policy
shift. Next year Malaysia will host the first multilateral
mine-sweeping and diving exercises under the US-led Western Pacific
Naval Symposium. It has also expressed tentative support for the
proposed creation of a mechanism under the 10-member Association of
South East Asian Nations to ensure a multilateral military approach
to disaster relief operations.
Abdul Razak Abdullah Baginda, who heads the Malaysian Strategic
Research Centre, argues that the key to force development under the
Ninth Malaysia Plan lies in prioritising programmes. "There is a
general slowdown in the economy and the new prime minister is
focused on cutting the current account deficit," he said. "The
major [force modernisation] thrust has been influenced by
counter-terrorism requirements but has not changed. However, the
MAF will need to further prioritise the development of its
capabilities."
Adm Tan Sri Anwar highlights one new priority. "We will now
expand the envelope toward area defence capabilities. It's all
going to medium-range missiles," he said. Looking beyond
the next five-year plan, he added: "After 2010 we envisage
improving and enhancing our information warfare and
electronic-warfare capabilities and at the same time having a fully
developed network of command and control, communication,
surveillance and intelligence systems. We intend to maximise
technology for quicker reaction and response times to any
contingency."
Emphasis on ground forces
Analysts generally hold that the Eighth Malaysia Plan had an
emphasis on ground forces, with the army's original procurement
wish-list worth MYR6.79 billion (USD1.80 billion). The ninth plan
should see the army's expansion continue at a more settled
rate.
New capabilities introduced under the current five-year
programme centre on 48 PT-91M MBTs from Poland valued at MYR1.4
billion, this sum including 14 armoured recovery and engineering
vehicles and 18 Avibras ASTROS II multiple rocket systems (MRS)
from Brazil valued at MYR750 million. The MBTs are scheduled for
delivery in 2007 but local observers are doubtful that more will be
obtained despite Warsaw's hope to provide up to 100 additional
platforms. Major enhancement of existing capabilities include the
initial acquisition from Turkey of 211 Savunma Sistemleri AS
armoured personnel carriers in 10 variants based on the ACV-300
model, with the inventory now thought to number about 300, and 22
Denel Ordnance 155 mm/45-cal G5 Mk 3 towed artillery systems from
South Africa. In addition, the Army Air Corps has obtained 11
AgustaWestland A109 light observation helicopters from
Italy.
This expansion of strength will now need to be assimilated.
"They've got the heavy metal for a medium-weight heavy brigade but
some question whether they have the doctrine," one source
said. Another noted: "The army has pretty well all the
capabilities it requires. The only major remaining hole lies in air
defence." The MAF's ground-based air defence is currently confined
to short-range systems. Together with anti-aircraft artillery these
include the UK-made Starburst and Javelin, Anza Mk II from
Pakistan, the Igla from Russia and the new MBDA Jernas
system. The next five-year plan should include the
introduction of a medium-range system, with China's KS-1/KS-1A
currently favoured over the Russian-made 9K37 Buk-1. These are
likely to be supplemented by additional short-range systems:
probably China's FN-6, which would be produced locally, or either
the Igla or new Igla-S from Russia. In the longer term,
some analysts suggest, the MAF may seek to establish a joint
structure to control the co-ordination of ground-based air
defence.
Together with air defence, perhaps the army's only other
high priority centres on bolstering command and control (C2). This
should include new tactical communication equipment and further
digitisation. Admiral Tan Sri Dato' Sri Mohd Anwar Bin Hj
Mohd Nor, the chief of defence force, announced in October an
initiative that should at least partially address the C2
requirement. There will be an allocation of MYR500 million
under the Ninth Malaysia Plan for the purchase of tactical
communications equipment to strengthen border posts along the
Malaysian-Thai frontier, he said. Night-vision
goggles may also be distributed more widely among these
positions.
This focus on the Thai border is prompted by concerns over a
low-level insurgency flaring up in Thailand's Muslim-dominated
southern provinces that has cross-border implications.
Earlier in 2005 the army moved to enhance its capability to
deal with non-traditional threats through establishing in its Third
Division a unit specialised in dealing with biological warfare
threats; similar units are planned for the other three
divisions.
The army is also looking at some expansion of the special
forces regiment after enhancing its counter-terrorism
capabilities, but equipment requirements will simply
address update needs. Elsewhere, the army is expected to focus some
attention on improving its public order support of the police.
Otherwise, sources say, the Ninth Malaysia Plan may include
provision for additional 105 mm howitzers and MRSs to further
strengthen firepower, the former because the 105 mm Model 56 pack
howitzers are nearing the end of their service life.
Submarine capability
The navy's centrepiece projects under the Eighth Malaysia Plan
involved the introduction of a submarine capability and the launch
of a major offshore patrol vessel (OPV) programme, but the
latter has proven problematic.
Under the submarine programme, finalised in June 2002 and
worth some EUR1.2 billion (USD1.4 billion), the navy will obtain
two Scorpene-class boats delivery of which is now scheduled for
2009. This deal includes a four-year training package on a French
Agosta-70, which may eventually be transferred as
well.
Together with preparing a new facility at Sepanggar Bay in Sabah,
the navy is exploring support requirements. This includes
talks aimed at obtaining a submarine rescue capability on a
commercial basis and a heightened interest in hydrographic skills,
particularly in the aftermath of the 2004 tsunami, which altered
the seabed in many places.
The OPV programme, with a design based on the Blohm + Voss MEKO
100, involved an initial order for six platforms with expectations
of 21 more in follow-up. The first two vessels were to be built in
Germany and the remaining four at Malaysia's PSC Naval Dockyard in
Lumut, but the shipyard has overspent funds without completing its
work and lost political favour. The government announced on 28
September that it had assumed control of PSC, saying that the first
OPV would be handed over in January, but additional funding is
required to complete the programme. The OPVs have,
meanwhile, been reclassified as corvettes and may be fitted with
additional armament. However, local sources are in
broad agreement that the programme will "most probably" end with
these six platforms.
As for the Ninth Malaysia Plan, sources point to several major
projects in preparation. These include: a requirement for
two or three multirole support ships, capable of handling both
troop transport and disaster relief operations; and two more
frigates to supplement the two Lekiu-class ships constructed in the
UK and delivered in 2000, with the UK again favoured to win the
order. There are also talks under way with China involving the
acquisition of two ships.
Shift in emphasis
Perhaps more significantly, the navy will shift its emphasis over
the next five-year planning period. "The navy can now focus on
warfighting capabilities, on honing their skills in warfighting,
rather than mundane constabulary duties," said Adm Tan Sri
Anwar.
This change results from much of the maritime enforcement mission
devolving to the newly formed Malaysian Maritime Enforcement Agency
(MMEA), which is expected to begin operations in the Strait of
Malacca on 30 November. The MMEA will operate offshore to a
distance of 50 n miles, with the first 12 n miles initially shared
by the Marine Police, while the navy focuses on areas from 50 n
miles to the Exclusive Economic Zone limit and beyond.
The MMEA will initially inherit 92 ships from various
agencies - including about 15 navy patrol vessels, of which six or
eight have so far been handed over. Beyond this, it has issued a
request for proposals involving the wet lease of two fixed-wing
maritime surveillance aircraft and has a stated requirement for two
helicopters.
Among other consequences, the MMEA's advent may provide the
navy with an argument for funding support to bolster its fleet of
major surface combatants. In the short term this is indicated
through its interest in additional frigates, in increasing the
lethality of the OPVs/corvettes and in the multirole support ship
programme. Beyond 2010, with the OPV/corvette programme
reduced to six platforms from the 27 originally envisaged, this may
bear additional fruit.
Air force assets
The Royal Malaysian Air Force has a growing fleet of advanced
combat aircraft. These include: eight F/A-18D Hornets, 18
MiG-29N/NUB and 18 Su-30MKM aircraft together with the possible
acquisition of 18 F/A-18E Super Hornets.
Thus, a logical requirement is to acquire an airborne
early-warning capability, with up to four platforms proposed, but
it is unclear whether this has emerged as a
priority.
Dato' Sri Najib, the defence minister, hints that such a
development is under active consideration. "We talk about
electronics and network-centric warfare, about sensors. These are
the things we are lacking," he said. "For example, airborne
surveillance aircraft not limited to small targets like pirates and
so forth but having the capability to detect any external
threat."
The air force came out of the current five-year plan with
18 Sukhoi Su-30MKMs worth at least USD900 million to strengthen its
air combat fleet, but the deal is proving somewhat problematic. The
Sukhois were originally due for delivery in batches of six during
2006 and 2007. However, the first phase has slipped by at least six
months from its original arrival date in January due to integration
problems. Russia is providing little more than bare airframes to be
fitted with Western systems while French company Thales is doing
the integration work, but the manufacturer has so far been less
than fully co-ºoperative.
Malaysia is, in any case, looking to expand its missile inventory
to mid-range coverage. The MBDA Missile Systems MICA is
among candidates to equip the Su-30MKM. Meanwhile, talks have
resumed aimed at providing Kuala Lumpur with the Raytheon Missile
Systems AIM-120 Advanced Medium-Range Air-to-Air Missile (AMRAAM)
to equip its eight Boeing F/A-18D Hornets after an earlier deal was
aborted when Malaysia rejected conditions requiring their storage
in the US.
Some sources believe that the Ninth Malaysia Plan includes
provision for the first phase of another acquisition of multirole
fighters, with more than MYR4 billion allocated. This
competition would involve 18 platforms, with the Boeing F/A-18F
Super Hornet thought to be favoured over additional Su-30MKMs. The
next five-year plan is also expected to see the air force get some
strategic transports, maritime patrol aircraft (MPA) and jet
trainers.
The strategic transport requirement should be met through four to
six Airbus A400Ms, with local sources convinced that a contract is
imminent for first delivery around 2013. The A400M may also
be used as an aerial refueller. The trainer requirement
resulted from delays in finalising the acquisition of 17 ex-Royal
New Zealand Air Force MB-339CB jet trainers, which have since been
sold elsewhere. Additional Hawks from BAE Systems of the UK
could provide a solution, but the new KAI T-50 Golden Eagle from
South Korea may be among the alternatives on offer.
Aerial reconnaissance
Aerial maritime patrol is conducted by the air force on
behalf of the navy and senior Malaysian defence officials
acknowledge that the current capability is insufficient. This
capability includes four Beechcraft B200Ts acquired in 1994 and at
least one C-130H-MP, although the latter is costly to fly in this
role and cannot operate effectively at night.
The air force will continue with this mission despite some MPA
assets being obtained by the nascent Malaysian Maritime Enforcement
Agency, but it is unclear how many new platforms are required.
The air force also operates the CTRM Eagle optionally
piloted aerial reconnaissance vehicle, with at least three
platforms mainly flying out of Labuan in Sabah. Consideration is
now being given to long-endurance surveillance unmanned aerial
vehicles.
Among rotary-wing aircraft, the most obvious requirement centres on
replacing up to 30 Sikorsky S-61A Nuri multipurpose helicopters
used for tactical transport and last upgraded in the early 1990s.
One source is adamant that the ninth plan includes no such
provision but, he says: "They are starting to look around."
Defence industry
"The defence industry received much-needed impetus with the
nation's procurement of capital equipment over the past decade
through implementation of the offset policy, enabling the country
to leverage on the procurement process to acquire technology.
The involvement and participation of the defence sector becomes
more significant with the implementation of outsourcing," Malaysian
Armed Forces chief Admiral Tan Sri Dato' Sri Mohd Anwar Bin Hj Mohd
Nor told JDW.
"The role of the defence industry in maintaining, repairing,
overhauling, upgrading and modernising military equipment has
become increasingly significant."
However, his view is tempered with realism. "Nevertheless, much
remains to be done in enhancing indigenous defence capability.
Various challenges stand in the way of accelerating the pace of
growth for the defence sector," he said. "These include the lack of
critical mass, high capital investment, lack of research and
development, rigid specifications, lack of competencies, absence of
uniformity and lack of promotional and marketing activities."
The need for military self-reliance has been a cornerstone of
Malaysian defence policy since the 1990s. Underlying this aim is a
formal offset requirement tied to procurements, with foreign
suppliers obliged to involve local companies in the transfer of
technology. By and large, this has proven a success for foreign
suppliers and local partners alike.
Malaysia's SME Aerospace illustrates this trend, having gone on to
win additional work unrelated to the offset packages, which sparked
its beginnings. Other companies, like Composite Technology Research
Malaysia with its tactical unmanned aerial vehicle and Deftech with
its Handalan military truck line, produce their own products.
However, not all defence ventures have been successful. Most
notably, the government earlier this year moved to assume control
of PSC Naval Dockyard when it ran into difficulties on the New
Generation Patrol Vessel programme.
Although Kuala Lumpur has encouraged local companies to venture
into the defence field, it offered little guidance or co-ordination
until the launch of the Malaysian Defence Industry Council (MDIC)
in July 1999, which brings together senior government officials and
the heads of defence companies under the defence minister's
chairmanship. This has so far proved only moderately successful, in
part because competing companies among its membership sometimes
fail to agree a common co-operative approach.
The Malaysian government also formulated the Defence Industry
Blueprint, which lays down the strategy and policies for
development of the defence sector in the six fields of MDIC focus.
These comprise aerospace, maritime, weaponry, automotive,
information communications technology and common-user equipment.
Each field is addressed through five areas of emphasis covering
human resources and competencies; technology development;
industrial development; self-sufficiency; and international
marketing.
Further, the government sought to provide a long-term guarantee of
work through its 2004 Guidelines for Long-Term 5 + 5 (year)
contracts and organised a series of seminars on financing. The
latter proved necessary because companies are expected to rely on
their own financial resources.
However, the self-financing requirement has effectively stifled
local research and development (R&D) activity - particularly as
the Ministry of Defence does not formulate any long-term indigenous
development and procurement programme with a specific funding
allocation. This discourages R&D investment, although some
manufacturers have taken the risk regardless.
Deftech, for example, is working on an indigenous armoured
vehicle to eventually replace the army's ageing Condor armoured
personnel carrier (APC) and Sibmas fire- support vehicle even
though there is no stated programme in place. This is despite
Deftech's poor experience in gaining follow-up work after
establishing an assembly plant in Pekan for the ACV-300 Adnan APC
and completing deliveries.
Another problem centres on exports. The Malaysian government
encourages companies to seek international orders but it lacks the
tangible support provided by organisations such as the French
government's Délégation Générale pour l'Armament. Instead, Kuala
Lumpur simply provides general guidelines and relies more on
private sector initiatives.
Malaysia's defence sector may nevertheless get a boost from an
initiative promoted by Adm Tan Sri Anwar: a major review of defence
logistics that should be completed and largely implemented during
the Ninth Malaysia Plan. "There will be [more] outsourcing,
privatisation and use of contractors," he said.