Explain RM16b helicopter rental contract, opposition tells govt

Summary

• Parliamentary Opposition Leader Hamzah Zainudin demands Putrajaya to explain its decision on renting 28 helicopters for 15 years at the cost of RM16 billion instead of buying them.

• He claims Poland spent much less for helicopters of the same model.

PARLIAMENT | The opposition today demanded an explanation from Putrajaya over its decision to spend RM16 billion for a 15-year rental of 28 helicopters which will be used by security forces.

According to Opposition Leader Hamzah Zainudin (PN-Larut), the cost is too much if compared with the amount spent by Poland to purchase 32 units of helicopters of the same model - AgustaWestland AW139 - which was estimated to be around RM8.9 billion.

“Yesterday, the Yang di-Pertuan Agong in his decree said personal issues must not be brought (into the Dewan Rakyat) and MPs must defend the rakyat’s interests.

“So now I want to defend their interests, why did the government adopt a policy where they rent helicopters for a very high price?

“There is evidence that recently, Poland purchased helicopters for USD1.83 billion. This shows that they purchased (the helicopters) for a very cheap price, around RM8 billion or RM9 billion,” he said when debating the king’s royal address in the Dewan Rakyat today.

Adding further, the Bersatu deputy president pointed out that the price paid by Poland was much lower compared to the contract signed by the government for the rental of 28 helicopters.

“We signed a deal worth RM16.6 billion for 28 helicopters. This is for rental, not even a purchase. This is what we want to question,” he said.

Hamzah said during his tenure as the home minister under the Perikatan Nasional federal administration, he rejected a similar proposal by the helicopter rental company.

“When I was the home minister, the company that got this project proposed a similar contract to us. I handed the matter to the civil servants to decide, and after studying the contract, they advised me against it.

“It’s better for us to purchase and give the MRO (maintenance, repair, and operations) contract to local contractors. This would create job opportunities for the people, and after considering everything, I decided to reject (the company’s) proposal,” he said.

Hamzah also expressed worry that the government’s decision would incur a massive debt that could affect the country’s future.

“We do not want future generations having to pay for these debts incurred by the government,” he added.

According to recent media reports, the government is renting 28 helicopters under a 15-year contract worth RM16 billion.

Defence Minister Mohamed Khaled Nordin in his Budget 2025 winding-up speech in the Dewan Rakyat last year said the helicopters will be for several government agencies, including the Armed Forces.

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