In a written parliamentary reply, Zaliha said the project is a strategic collaboration between Weststar Aviation Sdn Bhd and the Melaka government to develop the local aerospace industry.

“The RM16.54 billion contract signed between the federal government and Weststar Aviation on Dec 19, 2024 only involves leasing services for 28 helicopters, together with maintenance, insurance and continuous training for officials from security agencies for 15 years,” she said.

Zaliha was responding to Ikmal Hisham Abdul Aziz (PN-Tanah Merah), who had asked whether the RM16.54 billion allocation for the assembly plant for Leonardo helicopters in Batu Berendam, Melaka, was a loan to the state government since the defence ministry was not involved in the project.

On April 14, Melaka chief minister Ab Rauf Yusoh said the factory – set to be a hub for helicopter maintenance, repair and overhaul (MRO) services – would be developed over three years on a 6.88ha piece of land.

Rauf said the project would provide significant economic opportunities for Melaka by developing the state as an MRO hub for helicopters in the region and creating more jobs in the aerospace industry.

The chief minister also said Weststar had been entrusted to produce 1,500 helicopter pilots within one year to support the air transport services industry in the country.