BAE offers Malaysia UK govt-backed financing

KUALA LUMPUR: BAE Systems will provide Malaysia a United Kingdom government-backed financing deal if it decides to replace its fleet of combat jets with the Eurofighter Typhoon, senior company officials said.

Malaysia has for several years been weighing France’s Rafale jet and the Eurofighter Typhoon, built by a European consortium including Britain’s BAE, as it looks to buy up to 18 jets to replace its Russian MiG-29s - most of which are grounded.

The contest, potentially worth over US$2 billion (RM7.9 billion), is one of the biggest fighter deals under consideration in Asia, although a decision has been delayed due to upcoming national elections and a shift in Malaysia’s focus towards upgrading aerial surveillance capabilities.

“We have an offer on the table... It’s competitively priced and we have offered UK government financing so the Malaysian government can spread the payment over a longer period,” Alan Garwood, group business development director for BAE Systems, said in an interview here.

“We can offer training, local partnership and lots of jobs,” he added.

Financing would be provided via the UK Export Finance export credit agency.

BAE Systems, which leads the regional sales campaign for the Typhoon, is built jointly by BAE, Italy’s Leonardo and Airbus.