SHAH ALAM: IN my preview of the 2016 budget, I predicted that the Armed Forces will get a very big hit. However, it proved to be a softer blow instead as the allocation for next year was only reduced by some RM400 million.
For 2016, the government has allocated RM17.3 billion for the Armed Forces compared to RM17.7 billion, the amount actually spent this year. The Operating Expenditure (OE) for 2016 is RM13.4 billion, a reduction of some RM700 million from 2015 (RM14.1 billion). The Development Expenditure (DE) is RM3.847 billion, an increase of RM229 million compared to last year allocation of RM3.618 billion.
However I was not wrong about the assets to be procured for the year. Prime Minister Datuk Seri Najib Tun Razak in his budget speech presentation stated that among the items to be procured are “the Littoral Combat Ship, A400M, armoured personnel carriers and the VSHORAD system.
The APCs are obviously the Gempita and the AV4 while the VSHORAD is of course the Thales Starstreak system signed earlier this year.
Najib said the Armed Forces will also get the latest unmanned airborne system for ISR duties. Industry sources had told Malaysian Defence that the UAS being looked were either more Scaneagles (already operating in ESSCOM) or a new medium range UAV to be locally made or assembled. Apart from this some RM523 million will be allocated to build a new camp for the Army at Felda Sahabat, in Lahad Datu.
Najib said the government will also allocate RM864 million to the Malaysian Maritime Enforcement Agency (MMEA) for the procurement of Offshore Patrol Vessels (OPV) and patrol boats. This latest allocation will be a boon for MMEA which had long been hobbled by operating among the oldest patrol vessels in the region.
Whether the OPV will be the same one as shown during LIMA 15 is beyond me at the moment.
For internal security and public safety, some RM13.1 billion has been allocated. Among others 500 patrol cars and 500 motorcycles worth RM35 million will be procured. In the meantime, ESSCOM will be allocated some RM26 million for procurement in 2016.
Take note that the overall allocation for the security sector for 2016 is RM31.2 billion. The OE allocation is RM26.9 billion (RM13.457 billion for defence and RM13.447 billion for internal security). The DE expenditure is RM5.196 billion (RM4.295 billion for defence and RM901 million for internal security). The higher figure for defence DE is not explained though it may well include the allocation for MMEA, ESSCOM and MKN which come under the Prime Minister’s Department.
The overall 2016 budget calls for an allocation of RM267.224 billion.
— Malaysian Defence
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View Comments (16)
Is the OPV stated for MMEA different from the NGPC that are propose for them previously?
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Obviously its different from the NGPC.
Any news about Police Air Wing helicopters? Other than the AW139s, will there be any other types that will be procured?
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Yes the talk is they are getting the H135s. When is another issue.
it will be end of the MiG...
the budget is just for what ATM had order and not the one the plan to have it...
look forward what MMEA will get
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Obviously its different from the NGPC.
Noted..any progress on the NGPC so far?
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I am trying to be very hard to get updates..
"..RM13.457 billion for defence and RM13.447 billion for internal security..."
I find it very hard to comprehend the rational for this kind of numbers. The internal security sector which to a large extend comprise of the police need almost as much allocation as defense. They neither operate nor maintain such heavy weapon system like tanks, fighter jets and submarines. It the west the different is way bigger.
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The figure above is the Operational Expenditure which pays for the salary and operations. The Home Ministry employs more people than the Armed Forces, they also operate more stuff from prisons to immigration check points.
PM did not mention "pesawat rondaan maritim". Have to wait if this have been "killed".
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The funding announced is for the next 12 months. He did not announced about the VSHORADs but it happened.
That allocation for Mmea opv equates to about usd 200million.
Cheap opv's such as Chinese p18n opv (similar to thai navy opv) costs around Usd 60 million each. Something built in korea should also cost around that. Actually any commercial spec ship around 60-100m in length with good seakeeping and maybe a 30mm rcws should be good enough for offshore patrols.
Lower oe by 700 mil? Hmm could mean MIGs are off plus few more older assets may also be retired
Quite modest allocation for Malaysian defence during this 'hard time'.
Not bad at all.
Don't be too happy about the development budget.
It is common in Malaysia for projects to exceed budget and require extra allocation.
If this time extra allocation is not forthcoming, you can expect cuts in project specs or numbers.