WHAT CAN BE DONE
In his remarks on Aug 16, Sultan Ibrahim said those involved in military procurement must ensure evaluations are done transparently, based on market prices and the actual needs of the armed forces.
“Don’t waste time purchasing nonsense that does not fit the military’s needs. If you don’t know what the actual (market) price is, ask me first,” he said.
He cited the purchase five years ago of rigid raiding craft for commandos for RM5 million (US$1.18 million) as an example, saying he could have sourced a “better boat” for under RM2 million.
“Recently, I heard there was a proposal to buy a similar boat but in a larger size, at nearly RM10 million. This makes no sense and must be carefully reviewed,” he said.
Sultan Ibrahim also claimed a textile trader had tried selling the Defence Ministry drones, but did not elaborate.
The king’s remarks underscore the urgent need to modernise procurement practices, prioritise safety and recalibrate Malaysia’s defence strategy in light of security challenges such as tensions in the South China Sea, experts said.
“Malaysia cannot afford to remain underprepared. The king’s intervention may catalyse overdue reforms and elevate military readiness to meet future challenges,” said Ridzwan Rahmat, principal military analyst at defence intelligence provider Janes.
He said stronger project monitoring frameworks and enforcement of performance-based contracts can help to address broader issues such as poor contractor oversight, lack of accountability and weak internal controls.
“I think mandatory oversight by a military procurement committee within the government, hopefully non-partisan, would help,” he said.
For greater accountability, mechanisms such as integrity pacts – where a third party is given oversight to ensure anti-graft compliance – could be institutionalised in defence procurement, Raymon suggested.
“These tools have been successfully deployed in countries such as South Korea and India, where independent monitors ensure contracts are fair, competitive and corruption-free,” he said.
End-users should be involved in evaluating suitability and value to prevent purchases driven by vendor lobbying or political influence, Raymon said.
Performance-based contracting, introduced in July 2022 by Malaysia’s Ministry of Finance, should be applied systematically across major projects such as infrastructure defence-related projects so payments are tied to delivery milestones, said Jamil.
“Addressing these challenges requires stricter vetting of contractors, milestone-based progress reporting, and the use of performance bonds to enforce timely delivery. Independent oversight of major projects would also help reduce slippage,” he said.
https://www.channelnewsasia.com/asia/malaysia-defence-procurement-king-sultan-ibrahim-black-hawk-deal-5308491
