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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 assetsThe 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.