The Malaysian government has announced a major initiative to lease 28 AW149 medium helicopters under a contract with Italy, represented by Leonardo, valued at $3.4 billion over a 15-year period. This announcement was made by the Minister of Defence, Datuk Seri Mohamed Khaled Nordin, during his closing speech for the 2025 budget bill presented to the Malaysian Parliament on November 13, 2024.
This project, led by the Ministry of Defence and implemented by the Public-Private Partnership Unit (UKAS) and the Prime Minister’s Department, represents a strategic advancement in modernizing the operational capabilities of national security agencies. The minister specified that this leasing method, unprecedented in the country, aims not only to strengthen the Malaysian Armed Forces (ATM) but also to support other national security agencies.
Under this agreement, 12 helicopters will be assigned to the Royal Malaysian Air Force (TUDM), 7 to the Royal Malaysian Police (PDRM), 2 to the Royal Malaysian Navy (TLDM), 2 to the Fire and Rescue Department (JPBM), and 4 to the Malaysian Maritime Enforcement Agency (Maritim Malaysia). This distribution reflects the government’s commitment to adopting a comprehensive approach to national security needs. These helicopters will be used for various missions, ranging from military operations and maritime surveillance to emergency interventions and public safety.
The choice of leasing marks a turning point in Malaysia’s acquisition policy, traditionally based on outright equipment purchases, often associated with high upfront costs. This approach allows for reduced initial expenses while ensuring continuous access to modern and efficient equipment. Datuk Seri Mohamed Khaled Nordin emphasized that this initiative, though innovative for Malaysia, aligns with a strategy of resource optimization and adherence to budgetary constraints, while meeting international standards for modernizing defense capabilities.