Bangkok: The Cabinet has sanctioned a Defense Offset Package exceeding 100 billion baht from Sweden's SAAB AB, intended to offset military equipment imports stemming from the acquisition of another Gripen squadron valued at over 60 billion baht. This decision follows the Cabinet's earlier approval of the first phase of the four-engine package, which was valued at 19.5 billion baht.
According to Thai News Agency, Air Chief Marshal Praphas Sornchaidee, the Air Force spokesperson, disclosed that the Cabinet meeting on August 19, 2025, deliberated on the "procurement of replacement fighter aircraft for the Air Force and compensation for the import of military equipment (Defense Offset)." The Cabinet has greenlit the project to procure replacement fighter aircraft for the Air Force, in conjunction with the Defense Offset from Saab AB, Sweden.
This procurement initiative is designed not only to bolster military security capabilities but also to serve as a pivotal mechanism for national economic, social, educational, and technological advancement. Key elements include:
1. Legal Due Diligence: The government and pertinent agencies have meticulously reviewed the rules, regulations, and procedures to ensure transparency and precision.
2. Multi-Dimensional Benefits: Compensation from Saab AB is set to support security, enhance industry and technology, and improve Thai education.
3. Collaboration: The Air Force plans to collaborate with relevant government agencies to maximize social impact.
4. People-Centric Approach: This security investment aligns with direct benefits for national development and the improvement of the quality of life for the populace.
The Air Force spokesperson affirmed the Air Force's readiness to proceed with transparency, caution, and collaboration with all sectors, ensuring that the procurement of replacement fighter aircraft not only strengthens national defense capabilities but also signifies an investment in the future of all Thai citizens.