Malaysia is expected to fund the acquisition of new airborne early warning and control (AEW&C) aircraft at the expense of other proposed programmes, such as its possible involvement in Airbus Military's A400M transport.
Industry sources say budget constraints make any major acquisitions unlikely this year and that funds will also be limited in Malaysia's next five-year budget, which begins in 2006. But the air force's requirement for four AEW&C aircraft remains above all others in priority and a selection should be made within the next 18 months, they say.
A proposal to supply the Embraer EMB-145 with Ericsson's Erieye radar was close to winning the AEW&C deal a year ago, when sour US-Malaysian relations precluded the purchase of US aircraft. But sources say relations are now starting to warm up and that Malaysia is again willing to consider a US-sourced platform. Malaysia in 2003 evaluated Boeing's 737, Lockheed Martin's P-3 Orion and Northrop Grumman's E-2C Hawkeye 2000 to meet its airborne early warning requirement, along with an Erieye-modified Saab 2000. Sources say the EMB-145 and Hawkeye 2000 are the top contenders for a revived competition.
Several of Malaysia's other planned acquisitions have also failed to move forward over the last year due to budget constraints, including programmes for new maritime patrol aircraft, fighter upgrades and a mix of helicopters for attack, search and rescue, training and utility requirements.
EADS also has been pushing the A400M as a potential replacement for Malaysia's Lockheed C-130 transports. Top Malaysian government officials recently discussed the A400M with their counterparts in France, but industry sources doubt the country has sufficient funds for such a purchase and say the air force does not have a current requirement to replace its C-130s.
Malaysia could also advance its long-planned purchase of up to 18 Boeing F/A-18F Super Hornet fighters this year, if funds can be provided from outside its normal defence budget.
BRENDAN SOBIE / SINGAPORE
Source: Flight International
