PM stresses offset policy in arms deals
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PM stresses offset policy in arms deals

Defence technology cooperation sought

Rifles are put on display in a defence and security fair in Nonthaburi province in November last year. (Photo: Pattarapong Chatpattarasill)
Rifles are put on display in a defence and security fair in Nonthaburi province in November last year. (Photo: Pattarapong Chatpattarasill)

Prime Minister Srettha Thavisin has asserted the need for the armed forces to incorporate an offset policy in procuring weapons and military hardware.

Under this policy, reciprocal benefits should be secured as a condition for approving a new procurement deal, he said.

This would include an opportunity for Thailand to take part in developing new defence technology of the country selected to supply the armed forces with new military hardware.

Mr Srettha said that during his meeting on Monday with Marcus Wallenberg, president of Swedish bank Skandinaviska Enskilda Banken (SEB) and Saab AB, he discussed the possibility of the Thai government purchasing 12 SAAB Gripen fighter jets.

The prime minister mentioned the government's offset policy to Mr Wallenberg and expressed his wish to see the Swedish jet maker's aircraft technology development be based in Thailand.

Mr Srettha further explained that he was seeking the establishment of a new SAAB aircraft assembly factory, aircraft part manufacturer, or aircraft repair facility in Thailand.

Swedish companies under Mr Wallenberg's care account for up to 40% of Sweden's gross domestic product (GDP), Mr Srettha said.

The prime minister said he suggested Thailand and Sweden hold a small forum on the sidelines of the next World Economic Forum in Davos, Switzerland. This will allow for deeper discussion with Swedish companies on technological cooperation in broad-ranging fields.

Mr Srettha said he did not go into detail about the Royal Thai Air Force's plan to procure new fighter jets at Monday's meeting as it is the responsibility of the Ministry of Defence to decide what model and from which supplier its new jets will be purchased.

He said the offset policy should apply even if the air force buys US F-16 fighter jets instead.

In another development, Defence Minister Sutin Klungsang said the final decision on the next step with the Royal Thai Navy's long-overdue 13.5-billion-baht submarine procurement plan was pending a legal review.

Mr Sutin said the armed forces will meet later this week to establish a joint working group tasked with implementing the government's so-called military hardware procurement package policy.

Mr Sutin said all armed forces leaders have agreed in principle on this new policy, under which new military hardware procurement for all armed forces will be decided in one package, not separately as it is now.

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