Kuala Lumpur: The RM16 billion lease contract for 28 helicopters over 15 years includes a comprehensive package covering various essential services, Defence Minister Datuk Seri Mohamed Khaled Nordin said. He emphasized that the package encompasses maintenance, repair and overhaul (MRO) services, spare parts storage, and training programs for about 1,300 pilots and flight crew.

According to BERNAMA News Agency, the package also involves skill transfer and continuous training for engineers and technicians from user agencies, as well as insurance coverage for assets, all crew members, passengers, and third parties, along with financing or loan costs. Mohamed Khaled made these remarks while concluding the debate on the Royal Address for the Defence Ministry in the Dewan Rakyat.

Addressing concerns that an outright purchase might be more cost-effective, Mohamed Khaled explained that the leasing package eliminates incidental costs that the government would otherwise have to manage. He noted that the lease contract approach was selected to tackle the low availability of strategic national assets due to financial constraints, which have kept the country’s asset readiness at a less than optimal level.