DEFTECH NEARS SAUDI ARABIA DEAL

Company expects to conclude negotiations for sale of its AV-8 armoured vehicle by year-end

DRB-HICOM Defence Technologies Sdn Bhd (Deftech) expects to finalise talks with Saudi Arabia for the sale of its AV-8 8x8 armoured vehicle by year’s end.

Deftech group chief executive officer Datuk Amril Samsudin said he expected a positive outcome.

“Last year, we were one of two companies shortlisted from a list of six companies that participated in the testing. We have passed the vehicle trials and tests set by the Saudi Arabian government.”

The other companies who participated in the test are from China, the United States, Turkey, United Arab Emirates and Europe.

“We are in the midst of negotiations, but it should be concluded by the end of the year. If there are no changes in the country’s leadership, we are optimistic of a good outcome,” he told NST Business on the sidelines of the Defence Services Asia 2018 (DSA 2018) conference and exhibition, here, yesterday.

The company sent two variants of the armoured vehicle, equipped with 25mm and 30mm cannons, to Saudi Arabia in August last year for a performance test and assessment by its armed forces.

Citing the company as a “latebloomer”, he said now was not the question of catching up, but rather the question of being able to produce unmanned aerial vehicles (UAVs) that could withstand Saudi Arabia’s weather and meet the required specifications.

“Military vehicles are countryspecific and should be customised due to factors such as weather and humidity.

“Different weather conditions require different specifications that need to be catered to, which have to be carefully considered during development,” added Amril.

Deftech was awarded a RM7.55 billion contract in February 2011 to supply 257 units of AV-8 armoured wheeled vehicles to the Malaysian armed forces from 2014 to 2020.

However, Amril said research investments in defence should also be partly shouldered by the government, as it involved huge amounts of capital to ensure that the industry was protected and the nation’s economy was spurred by the creation of jobs and technology.

“It is crucial that we are selfreliant when it comes to the defence industry as it also involves the security of the technology itself.

“We believe in the local manpower and we are proud of it. Many of our skilled workers have secured offers to work abroad in major companies,” he said.

Amril said Deftech’s three-year plan included the delivery of the AV-8s on schedule and to begin development of UAV systems.