Putrajaya has clarified that it did not allocate RM16 billion to build an assembly plant for Italian helicopter manufacturer Leonardo in Batu Berendam, Melaka.
Minister in the Prime Minister’s Department (Federal Territories) Datuk Seri Dr. Zaliha Mustafa explained in a written parliamentary reply that the project is a strategic collaboration between Weststar Aviation Sdn Bhd and the Melaka state government to grow the nation’s aerospace sector.
She stressed that no federal funds were used for the construction of the Leonardo helicopter assembly facility.
Dr. Zaliha said the RM16.546 billion figure mentioned publicly refers solely to a federal contract with Weststar, which covers the leasing of 28 helicopters, as well as maintenance, insurance, and ongoing training for security agency personnel over 15 years.
She reiterated that the contract signed on Dec 19, 2024, has nothing to do with the construction of the assembly plant.
The clarification came in response to a question from Datuk Seri Ikmal Hisham Abdul Aziz (PN–Tanah Merah), who had asked whether the alleged RM16.45 billion allocation for the Melaka assembly plant was a federal loan to the state government, especially since the Defence Ministry is not involved in the project.

