EXCERPT
What
RM1b Can Buy
Most
of us do not realize the proportion of the country’s wealth being spent on
arms, the commissions being paid for arms and in many cases, questionable
purchases of such arms. Compare that with the gross shortage of schools and
hospitals, public transport and other social services that so many Malaysians
face and the obscenity of it all can be clearly seen.
For
example, RM1 billion worth of arms is equivalent to building at least 100
hospitals or 1000 new schools or 10,000 new houses. Do you know that since
Independence in 1957 – after more than 50 years – there has not been a single
new Chinese or Tamil primary school built? In fact we had more Chinese and
Tamil primary schools then (1,350 and 880 respectively) compared to the present
(1285 and 550 schools respectively). And the population at Independence was
only half what it is today!
But
in one weekend alone in April 2010, the BN Government could justify spending
RM10 billion on arms at the Kuala Lumpur Defence Fair. With that money, we
could have built 1000 hospitals or 10,000 schools or 100,000 houses! The Tenth
Malaysia Plan (2011-15) has allocated RM23 billion for defence and security.
Malaysia’s
Recent Splurge on Arms
In
Malaysia, although the last war against Indonesian “Confrontation” was over
more than forty years ago, the BN Government has still made available ample
funds for the Defence Minister to purchase state-of-the-art defence equipment
all these years. “Military modernization” has become a new catch-word for the
Defence Ministry in Malaysia to justify defence budgets out of all proportion
to the national budget. At the same time, the military-industrial complexes of
the West have convinced their own governments that one way to keep their
economies buoyant is to sell more weapons abroad, especially to Second and
Third World countries where the flashpoints tend to occur.
Up
to now, there has been a lack of public outcry over the size of the defence
budget in Malaysia. And while the alternative front, Pakatan Rakyat
never fails to expose corruption and non-transparency in arms purchases, their
alternative defence policy is not evident.
Thus,
what is the purpose of this entire splurge on arms by the BN Government? Does
it make sense in the light of the regional status quo and the state of our
economic development? How is Malaysia’s defence budget being spent? Malaysia
already has eight US-made F/A-18D jet fighters. Six Russian MiG-29s have been
retired but another 10 aircraft will continue to be maintained by Aerospace
Technology System in Malaysia for several years. Malaysia is seeking enough
fighters for one to two squadrons. As well as the Russian Sukhoi Su-30s, other
fighters Malaysia is considering include the Boeing F/A-18E/F Super Hornet,
Lockheed Martin F-16 and Saab Gripen.
The
Defence Ministry also wants to replace its 20 Sikorsky S-61 Nuri helicopters,
the first of which it received in 1968. The Eurocopter EC725 was chosen in 2007
after the government had evaluated the Agusta Westland AW101, Mil Mi-17 and
Sikorsky S-92. However, the deal was called off after criticism from opposition
political parties.
A
Futile and Wasteful Arms Race in ASEAN
The
arms race among the Southeast Asian countries seems the most pointless after
all the talk at conferences on ASEAN integration. Even so, each country’s
attempt to be ahead in the race is self-defeating. For example, does Malaysia’s
acquisition of 18 Su-30MKM planes change the balance of power in the immediate
region? This is doubtful since Thailand operates 57 F-16A/Bs & has 6
Gripens on order while Singapore has even more jet fighters including F-16C/Ds,
F5s and F-15SGs on order.
China’s
increased regional power has also given its Southeast Asian neighbours such as
Malaysia an excuse to step up their own defence purchases even though our
leaders keep stressing they do not see China as a threat in the region. Figures
from the Stockholm International Peace Research Institute show that Southeast
Asia’s top five arms importers – Thailand, Indonesia, Malaysia, Burma and
Singapore – spent more than US$8 billion on weapons between 1992 and 1996.
In
1997, Malaysia was described as one of “East Asia’s Big Eight” countries
devoting “lavish resources” to develop its military industries. The Bulletin
of the Atomic Scientists said that these countries – China,
Japan, Taiwan, Indonesia, South Korea, Thailand, Singapore and Malaysia – were
enhancing their capabilities in military organization, arms purchases, and
military industrialization.
Malaysia’s
rivalry with Singapore springs not from ideological differences but from the
latter’s forced separation from the Malaysian federation in 1965, after a
crisis emanating from the racial politics of their ruling classes. From this
rivalry we can see how the ensuing arms race has burdened the peoples in the
two countries with billions in arms spending.
The
Non-Aligned Movement was founded upon the principles of peace, neutrality and
impartiality to the Superpowers. A genuine non-aligned policy can therefore go
a long way toward ridding us of the need to procure expensive arms.
Malaysia’s
Military-Industrial Complex
Many
are not aware of the rapid growth of Malaysia’s domestic military-industrial complex.
The top brass of the military guard their power and privilege and this is
nourished by easy access to the defence budget and the simple justification of
“national security”. Today we have seen the growth of such a complex in many
countries, including Malaysia. An offshoot of the arms purchases is the race to
develop domestic defence equipment industries in each of the S.E. Asian
countries. In 1993, aerospace became a new strategic sub-sector of Malaysia’s
manufacturing sector. This sector is both capital intensive and involves high
technology.
With
the burgeoning of a domestic military economy, we see class interest developing
between the ruling elite and the top brass of the military. As it happens,
there is now an extensive military automotive complex in the Prime Minister,
Najib’s electoral constituency of Pekan with its layers of contractors,
sub-contractors, servicemen and other gainfully employed.
We
also find many retired generals and other officers of the armed forces in the
directorships of many if not most of these local aerospace companies. This
brings into focus questionable practices in the Malaysian civil and military
services when we see top military and civil servants retiring into
directorships of utility and arms companies.
Most
military contracts come with purchase agreements involving local spin-offs. For
example, Malaysia’s Airod has an agreement for aircraft maintenance with the US
Lockheed Corporation and is trying to gain a foothold in the regional aircraft
upgrading market, estimated to be worth $1 billion yearly. British Aerospace’
sale of 28 Hawk ground attack aircraft to Malaysia in the early 1990s came with
an offset package including the manufacture of air-frame components, cannon,
ammunition and tyres in Malaysia. These products would not only be fitted to
the Hawks sold to the RMAF but could also be exported to other countries using
the same aircraft.
Bumiputera
companies have made a mark in the local aerospace industry and the Directory
of Malaysian Defence Industry Companies 2000 published by
the Malaysian Industries Defence Council already listed 18 aerospace companies.
Thus while most businesses are subject to market forces, defence enjoys a great
deal of “featherbedding” – contracts are awarded without competition and the
sector has its own government blessed “aerospace” industrial policy.
The
significance of this domestic military-industrial complex to the composition of
the ruling class, class relations, a right-wing tendency, patronage, employment
and the outcome of elections cannot be underestimated.
Arms
for Aid Scandal, 1994
The
“Arms for Trade” scandal, involving the funding of the Pergau hydroelectric dam
in Malaysia, revolved around the linking of arms sales (worth RM5 billion) to
British overseas aid, in the form of Aid-and-Trade Provision (ATP) funding. The
linkage came to light when a senior civil servant in the British Overseas
Development Administration (ODA), Sir Tim Lankester, objected to the funding of
the un-economical and environmentally damaging dam in 1991 but his objections
were over-ruled by the then Foreign Secretary, Douglas Hurd.
It
was stated British government policy that there could be no such linkage. This
government policy was based on the 1966 Overseas Aid Act. Allegations of
corruption were levelled at the Malaysian government, specifically in the
Sunday Times. It provoked a backlash by Mahathir’s government which announced a
‘Buy British Last’ policy in 1994. Soon after, the editor of the Sunday Times
at the time, Andrew Neil lost his job as editor because of the political impact
of the investigations of Pergau.
While
the mainstream press in Malaysia published hardly anything on the “Arms for
Aid” scandal which had erupted in Britain in 1994, the British press had a
field day which subsequently led to Mahathir’s second trade boycott against
Britain. These revelations in the British press on the scandal are published in
this book for the first time in Malaysia.
The
Murder of Altantuya and the Scorpene Deal
It
took the brutal murder of a Mongolian national, Altantuya Shaaribuu in 2006 to
shock the nation and for questions surrounding the purchase of two Scorpene
submarines to be asked in this country and in France. Altantuya, a Mongolian
translator was shot in the head on October 19, 2006, and then blown up with C4
explosives which are available only from Malaysia’s military.
According
to testimony in the trial, Altantuya accompanied her then-lover
Abdul
Razak Baginda to Paris at a time when Malaysia’s Defence Ministry was
negotiating through a Kuala Lumpur-based company, Perimekar Sdn Bhd, to buy two
Scorpene submarines and a used Agosta submarine produced by the French
government under a French-Spanish joint venture, Armaris. Perimekar at the time
was owned by a company called Ombak Laut, which was wholly owned by Abdul
Razak. The contract was not competitive.
The
Malaysian Ministry of Defence paid 1 billion euros (RM 4.5 billion) to Amaris
for the three submarines, for which Perimekar received a payment of 114 million
euros (RM510 million). The total cost of the submarines purchase after
including infrastructure, maintenance, weapons, etc. has risen beyond RM7
billion. The Deputy Defence Minister Zainal Abdidin Zin told the Dewan Rakyat,
Malaysia’s parliament, that the money was paid to Perimekar for “coordination
and support services” although the fee amounted to a whopping 11 percent of the
sales price for the submarines.
Altantuya,
by her own admission in the last letter she wrote before her murder, said she
had been blackmailing Abdul Razak, pressuring him for US$500,000. She did not
say how she was blackmailing him, leaving open lots of questions. While two
former bodyguards of the then Deputy Prime Minister and Defence Minister were
subsequently found guilty of her grisly murder, it raised suspicion of official
cover up since their motives were never divulged to the public nor probed in
court. Altantuya had had a relationship with Abdul Razak Baginda, a defence
analyst from the Malaysian Strategic Research Centre think-tank, with ties to Najib
Razak. She had worked as Abdul Razak’s translator on a deal to purchase
Scorpene submarines from France. Chapter three looks at the murder of Altantuya
and its link with the purchase of the Scorpene submarines.
An
Integrated and Accountable Military?
Experts
say that Malaysia’s air force suffers from too many aircraft types and aircraft
that fail to keep up with recent purchases by its neighbours. Chapter 4
chronicles an exhaustive record of negligence, non-accountability and
non-integration in the Malaysian defence sector through the years. The recent
case of the missing jet engines was by no means exceptional when seen in the
light of these scandals, viz. the 12 Eurocopter helicopters costing RM2.3
billion; the 27 offshore vessels ultimately to cost RM24 billion to be built by
PSC-Naval Dockyard; the operational problems faced by the newly acquired Hawk
fighters in 1996; the missing Skyhawks in the 1980s.
The
questions Malaysians want answered are: Is the Malaysia government buying the
BEST aircraft in terms of value for money? Was there a feasibility study
conducted to compare prices and functionality of these copters? In the first
place, why was there an issue with the proposed purchase that necessitated the
PAC to conduct an investigation?
Wastage
and Tragedies
Besides
having to pay for the exorbitant military budget through the years, the human
casualties and the loss of these very expensive aircraft is not acceptable.
Apart from the tragic loss of lives of our servicemen and women, one wonders if
we have been short changed by the arms suppliers or if there has been
compromises on the price, quality of the equipment or even if we have
adequately trained personnel to fly these ultra modern, high-tech jet fighters.
And of course, the quality of management and system of accountability have been
called into question often enough in the armed forces.
From
1968 to 1997, the crashes of Sikorsky Nuri helicopters had claimed 73 lives in
all.
The
Defence Minister, Datuk Syed Hamid Albar who was in the United States at the
time, said there was no plan to retire the Nuris; instead, the remaining
Sikorsky 61A-4 Nuris would be upgraded to extend their life span. They had been
in service for 22 to 30 years up until 1997.
From
1970 to 1995, there were four De Havilland Caribou aircraft crashes killing at
least 17 servicemen. Then there was the crash of the Super Puma helicopter in
January 1994 in which four crew members lost their lives. The Super Puma was on
its way to fetch then Deputy Prime Minister Datuk Seri Anwar Ibrahim and his
delegation in Kangar when it crashed.
It
was the 15th crash involving aircraft of the Royal Malaysian Air Force since
1990 – five involved the Pilatus PC-7 basic training aircraft; four were A-4PTM
Skyhawk fighter bombers. The other incidents included the Alouette III
helicopter, the Cessna 402 aircraft, a Nuri helicopter and Hercules C-130
transport aircraft. It was remarked that we have lost more aircraft and pilots
through accidents than through war combat.
A
Military Dominated by One Ethnic Group
Despite
Najib’s “1Malaysia” policy, the Malaysian military remains dominated by one
ethnic group. Although there are some ethnic Indians and Chinese in the
Malaysian Armed Forces, the top brass are exclusively Malay. The Royal Malay
Regiment, the premier corps in the Infantry, remains exclusively Malay.
Two
years after the May 13 Incident, in 1971 non-Malays constituted about 50 per
cent of army officers; sixteen out of every hundred soldiers were non-Malays;
the Malay and non-Malay officers’ ratio in the RMN was 50-50 while in the Air
Force, more than half the officers were non-Malays; non-Malays formed 25 per
cent of the navy’s other ranks while in the air force, it was 40 per cent.
By
1981, the Malay composition in the armed forces had reached more than 75% for
officers and 85% for the rank and file. However, in 1993, the number of
non-Malay officers in the 90,000-strong army had dipped below 15 per cent. For
the other ranks, non-Malays constituted about nine per cent. The situation was
even worse in the police force. It was estimated that in 1993, Chinese
comprised only five per cent of the 76,000-strong force.
In
2002, then Chief of Defence Forces, General Tan Sri Mohamed Zahidi Zainuddin
revealed that non-Malays made up less than 10% of the armed forces, which had
about 110,000 personnel. (36) Today, it is safe to estimate the percentage of
Malays in the armed forces to be more than 90%. As in the other sectors of
Malaysian society, this domination of the military and the police by one ethnic
group does not serve the interest of multi-culturalism in the Malaysian nation
we want to build.
Checking
BN’s Defence Spending
There
is no doubt that ever since the Malaysian peoples’ “political tsunami” of 8
March 2008, the Barisan Nasional Government has been forced to be more
circumspect about authorizing any big defence procurements for fear of losing
electoral support. For instance, the BN government was forced to stall the
planned purchase of the Eurocopter EC 725 helicopters. Nevertheless, this has not
stopped the same BN government from allocating a record RM23 billion, or 10% of
the total development allocation under the Tenth Malaysia Plan for defence
& security.
It
is clear that the BN Government could get away with such huge defence budgets
during the last few decades because of the erosion of these safeguards in our
democratic system, viz. dominance of the executive over parliament; loss of
public accountability; absence of Freedom of Information legislation;
inadequate separation of powers between the executive and the judiciary; poor
safeguards for civil rights.
However,
it is important that while Pakatan Rakyat highlights the corruption involved in
arms procurements by the BN, they also present their alternative defence policy
to the rakyat at the next general elections.
Stopping
the Arms Race in ASEAN
Disarmament
must ultimately be inclusive of all the nations within ASEAN. The peoples in
ASEAN deserve a better quality of life compared to the status quo which is
committed to an irrational arms race among the ASEAN countries themselves and
deprives their peoples of valuable resources for social development. The
financial crisis toward the end of the 1990s gave us a vision of a region
without an arms race. It was not because the political leaders had come to
their senses – simply that countries in the region could no longer afford
expensive military equipment. Indonesia announced in 1998 that it would cut
military spending by up to US$20 billion.
An
obligatory ASEAN register of conventional arms is a good first step toward
increased transparency in exposing the armaments of each ASEAN country.
However, the register needs to be expanded to ensure that each country provides
greater detail about their arms procurements and these have to be cross-checked
with other sources. Beyond imports and exports, the Register should include
each country’s capabilities, inventories and production levels.
Minimising
the defence budget in Malaysia and throughout ASEAN can free more valuable
resources into urgently needed social services and socially useful production.
Wasting money on arms prevents it from being spent on health, education, clean
water or other public services. It also distorts the economy and diverts
resources, such as skilled labour and R&D away from alternative economic
activity.
Reforms
and a Culture of Peace
Working
towards an end to war involves putting an end to the culture of war. It
involves finding ways to resolve conflicts through changing our own attitudes
and behaviour. Leaders have the responsibility to initiate that fundamental
change and involving everyone in that peace-building process. It involves
overcoming the fears, prejudices and other contradictions that give rise to
misunderstanding, violence and conflict. It involves re-ordering our
financial priorities away from wasteful and destructive arms to the social
well-being of all our peoples.
Facilitating
greater democracy in our society also creates a culture of peace since the more
that citizens have the opportunity to participate in the running of their
society and the freedom to express their aspirations and criticisms, the less
likely are they to take up arms to overthrow the government.
To
achieve a culture of peace would require a profound reformation but reform we
must. Cooperating in shared goals and nurturing positive interdependence can
help to build this culture of peace. A culture of peace should be our nation’s
vision. It is a vision that is only attainable in a society that respects human
dignity, social justice, democracy and human rights. It is an environment that
can settle conflict and differences through dialogue and democracy and not
through threats and repression.
Social
change will only happen when the people are mobilised in a movement for peace.
Only such a movement and consciousness can divert the billions spent on
unnecessary and wasteful armaments to peaceful and socially useful production.
Thus we also need the participation of an active labour movement pledged to
promote socially useful, alternative production rather than armaments
manufacture.
An
Alternative Defence Policy
Our
wholesome economic development will require the drastic slashing of the defence
budget and the conversion of our military production to civilian economy or at
least to purely defensive rather than offensive purposes. Such a defensive
policy is eminently preferable. In the event of aggression by an outside force,
having decentralised, dispersed people’s militia forces in small units armed
with precision-guided, anti-tank and anti-aircraft missiles would be the way to
wage a protracted people’s war against the aggressor. As has been proven by
people’s wars in history, eg. the Vietnam war, such a defensive strategy will
render useless all the tactical weapons of the aggressor, including nuclear
warheads. Most importantly, such weapons of self-defence will be many times
cheaper than the offensive high tech jet fighters, tanks, submarines and other
vessels in the arms race we cannot hope to win anyway.
Our
economic priorities need to be diverted away from military production and
toward production for human needs, and public expenditure diverted to more and
better social services. It is possible to retool defence-oriented
establishments for alternative socially useful production without loss of jobs.
As armaments production becomes more and more capital-intensive, producing
socially useful goods can create more jobs than producing military goods. While
civilian manufacturing industry is starved of investment, military production
appropriates significant amounts of the nation’s capital, technology and skill.
In
the same way that the production of energy-saving material and equipment
(eg.insulation) and demand management is preferable to energy-creating
expenditure (eg. dams and power stations), socially useful production to
replace military production would require a mind set change and re-ordering of
priorities in our society. This is the essence of sustainable living and the
promotion of peace in our country, our region and throughout the world…
WITH THANKS TO DR KUA KIA SOONG
Dr Kua
Kia Soong is director of Malaysia’s human rights organization, SUARAM. He was
Principal of the community-funded New Era College (2000-08); Opposition Member
of Parliament for Petaling Jaya (1990-95); Director of Huazi Research Centre
(1985-90); Political Detainee under the ISA (1987-89); Academic Director to the
Malaysian Chinese schools (1983-85) and Lecturer in Sociology at the National
University of Singapore (1978-79). He studied for his BA Econ (1975), MA Econ
(1976) and PhD in Sociology (1981) at Manchester University, UK.