Analysis Engine Crisis Puts Thai Submarine Project in Peril Once Again

[webfact]

Reference picture courtesy of Defense Security Ais

 

Thailand's ambitious submarine project has hit another snag, casting further doubt on its future. The plan to install German MTU 396 engines in China's Yuan-class submarine has floundered, as Thailand's Defence Minister, Phumtham Wechayachai, found his efforts to secure the engines thwarted by EU restrictions.

 

These restrictions prevent the export of military equipment to China, given Germany's obligations within the EU and NATO.

 

Previously, the Thai Navy opted for a substitute Chinese engine and accepted compensation following the delays caused by the pandemic and engine procurement challenges.

 

The submarine deal was originally inked in 2017, costing Thailand a hefty 13.9 billion baht. However, progress has barely moved beyond 64% completion, even with China pocketing payments totalling 7.7 billion baht.

 

Despite ongoing negotiations, a viable solution for the German engine issue remains elusive, leading to indefinite project delays. As the end-of-2023 contract deadline looms, estimates hint at postponements extending as far as fiscal year 2027.

 

With construction setbacks exacerbated by the need for a 1,270-day contract extension, Thailand's naval ambitions are treading water.

 

Meanwhile, the Thai Navy shifts focus towards two new frigates, eyeing a five-year, 35-billion-baht budget. Opposition MP Wiroj Lakkhanaadisorn argues for deriving domestic economic benefits from these frigates, advocating for the use of local resources and the establishment of an offset policy to spur economic growth.

 

Reports suggest economic burdens might limit the budget allocation to just one frigate in the coming fiscal year. Yet, experts assert that building two frigates simultaneously would enhance cost efficiency and facilitate invaluable technology transfers.

 

Frigates play a crucial role in safeguarding Thailand's maritime interests, and with one frigate soon set for decommissioning, time is of the essence.

 

Wiroj insists on a phased budget approach to alleviate potential fiscal strain, allowing incremental financial injections over multiple years. This prudent strategy ensures the frigate acquisition aligns with Thailand's financial capabilities without compromising long-term economic and tactical advantages.

 

The Thai industrial sector backs the frigate project, eager to contribute at least 30% in local content to the ships' construction. By harnessing domestic industry expertise, Thailand aspires to strengthen its defence capabilities while fostering technological innovation and economic development within its borders.

 

  Adapted by ASEAN Now from Thai PBS World 2025-05-21

 

 

[bamnutsak]

Nothing a few rubber bands can't resolve.

[ozz1]

I'm sure there are a lot of things better to spend their money on health and safety for one but they love their toys

[ChrisY1]

Unbelievable that this damn submarine nonsense has been going on for so long.....it really indicates the level of incompetence within the Thai military.

Deposits paid....commissions received and the entire fiasco bumbles on!

[Pouatchee]

maybe potatongarn can find some kind of soft power on her shopping trip to europe...

[Artisi]

33 minutes ago, ChrisY1 said:

Unbelievable that this damn submarine nonsense has been going on for so long.....it really indicates the level of incompetence within the Thai military.

Deposits paid....commissions received and the entire fiasco bumbles on!

Commissions are the major consideration, once paid and banked, the rest of the exercise is irrelevant. 

[Nickcage49]

I'll ask again. Why in the world does this country need subs? Take care of the poor first. People are starving to death.

[klauskunkel]

7 hours ago, webfact said:

Thailand's naval ambitions are treading water

Aah, I see what you did there; been fishing for metaphors...

[Homburg]

They'll never get it off the ground.😉

[hotchilli]

6 hours ago, Artisi said:

Commissions are the major consideration, once paid and banked, the rest of the exercise is irrelevant. 

Got it in one... 

[redwood1]

6 hours ago, Artisi said:

Commissions are the major consideration, once paid and banked, the rest of the exercise is irrelevant. 

 

I would love to see the paper trail on this fiasco......Considering this sub deal is almost 10 years old, thats plenty of time to get lots and lots of hands into the cookie Jar.... 

[Purdey]

How about not having a war and declining the submarine, frigate or whatever?

[Grusa]

If Somchai had started building this submarine in his backyard in 2017, it would be finished and floating (sinking?) by now, and only cost 2000 baht!

[tompelli]

Speaking about frigates, anyone seen a report on why the HTMS Sukhothai sank? Anyone fired? Demoted? I know it's only been 3 years...

[Autonuaq]

1 hour ago, Nickcage49 said:

I'll ask again. Why in the world does this country need subs? Take care of the poor first. People are starving to death.

Becausse without them Thai would face the same condtions as the chinese do and that is worser the nthe poorest thai now face.

Wake up stop dreaming on your pink cloud and get your feet bac k on the ground.

When one speaks about freedom and assest you need to haf the tools and will to protect.