SHAH ALAM: 2022 National Security Budget. The Defence Ministry is getting RM16.14 billion in the 2022 budget while the Home Ministry was allocated RM17.089 billion. This is the third year running that the Home Ministry got a higher allocation than Defence, following the government decision in 2019 to move the MMEA in the former. The national security sector got RM33 billion out of the RM332.1 billion allocated for 2022 or around 10 per cent of the total budget.
The 2022 allocation for Defence is an increase of some RM280 million allocated in 2021. Next year’s budget for Home Ministry is also a slight increase from 2021, which was RM16.85 billion. As usual there was no specific procurement programmers outlined in the budget documents apart from a couple of things mentioned in the speech.
From the Finance Minister budget speech:
Kemakmuran ekonomi tidak akan tercapai tanpa negara yang aman dan damai. Bagi tahun hadapan, Bajet ini menyediakan peruntukan kepada Kementerian Pertahanan dan Kementerian Dalam Negeri masing-masing sebanyak 16 bilion dan 17 bilion ringgit.
Antaranya sejumlah 1.6 bilion ringgit diperuntukkan untuk mempertingkatkan kesiagaan aset-aset utama Angkatan Tentera Malaysia. Peruntukan ini turut melibatkan 14 juta ringgit bagi mengganti peralatan utama PASKAL dan PASKAU seperti payung terjun, alat selam litar tertutup dan bot.
Kebajikan anggota-anggota polis dan tentera kita juga tetap menjadi keutamaan. Bagi tahun hadapan, 230 juta ringgit disediakan untuk kerja-kerja menyelenggara sekolah dalam kem tentera, fasiliti ketenteraan dan Rumah Keluarga Angkatan Tentera. Peruntukan ini turut melibatkan penggantian dan pembaikan lif serta kuarters PDRM.
Operating expenditure (OE) for Defence in 2022 is RM11.05 billion, a slight decrease compared to last year, which was RM11.35 billion. Development Expenditure (DE) increase by some RM400 million to RM5.04 billion in 2022 compared to RM4.5 billion in 2021. What is interesting the allocation for asset procurement goes up to RM5.04 billion in 2022, it was RM4.5 billion last year.
The DE for the Army in 2022 is RM175 million while equipment is RM1.12 billion; the RMN is RM68 million and RM1.07 billion; RMAF RM39 million and RM1.6 billion and Joint Force Command RM82 million and RM298 million. Interestingly STRIDE is receiving RM40 million in funds in 2022 compared to RM7 million in 2021 and RM5 million in 2020. The Armed Forces quarters development is allocated RM488 million this year compared RM293 million last year and RM166 in 2020.
The OE for the Home Ministry is RM13.5 billion while the DE is RM3.5 billion. The bulk of the OE and DE for the Home Ministry is of course allocated to the PDRM which is getting RM2.05 billion for its DE budget. MMEA is getting RM183 million in DE for 2022 compared to RM141 million in 2021.
What this means in terms of procurement? We will have to wait and see then.
— Malaysian Defence
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View Comments (31)
LCS funding was confirmed delayed to next 2023 or more budget. So sad...
where?
A good start for the air force procurement plans. Do you see a restart with the navy's LCS program with next year's allocation? And the army will have their SPH I hope.
Would be interesting to see what STRIDE has to offer. They must have presented a very good sell to the FM to be able to get such a big increase in allocation.
Also, let hope we don't see those BMW in the police force anytime soon.
Ed - "they must have presented a very good sell to the FM to be able to get such a big increase"
Not necessarily. We've long had a penchant for spending cash on local entities under the illusion it actually benefits the country.
When it comes to testing stuff, including how they perform in local conditions and ballistic effects, STRIDE does a decent job. It however has yet to come up with something truly "local" which meets the end users requirements. The laser guided 155mm round [a Krasnapol copy from China] which we were told not to discuss died a natural death. No news is forthcoming about the 120mm mortar [based on a Slovakian design] that was said to be the lightest.
Alhamdulilah, in increase in defence budget is always a welcome. Then again I agree with other commenters before that its better to change the procurement policy rather than having budget increase.
- With RMAF getting usd400 million, I would say half of that is enough to cover the 2 new MPAs and 3 MALE UAVs (hopefully not the expensive ANKA). The rest of the budget could be allocated for a new radar and maybe 3-5 units of LCA
- RMN well urgh its not big surprise no budget allocated for LCS due to the ongoing investigation. with usd250 million, I hope RMN spend it wisely ie getting the Helos, UAVs and LMS.
- I am guessing that the Army wanted the SPH as soon as possible while getting as many 6x6 as they could.
- What is MMEA next plan after getting the 3 DAMEN 1800 OPV during RMK12? More NGPC and UAV? Please enlighten me.
- I am note sure what STRIDE may offer. My guess would be body armor or small arms/munitions related stuffs.
Hmm... should we be happy there was no decrease in defence budget? Factored in currency exchange differences, the RM300mil increase will be gobbled up so let's assume the total to spend is about the same. See the budget comparison will show there isn't much significant changes from last year:
TDM RM 1.12Bil(2022), RM 1.02Bil(2021)
TLDM RM 1.07Bil(2022), RM 1.15Bil(2021)
TUDM RM 1.6Bil(2022), RM 1.5Bil(2021)
With roughly the same budget, what did all 3 get this year? Nothing much, except utility vehicles for ATM, MUH for TLDM. So I'm not expecting much either for this year.
Rather than see the yearly budget, I want to see what's planned for RMK12.
From what I hear through insiders in this company, BNS facing serious cashflow problem (paid bonuses to management, extreme spending, paid considerable sums for Korean consultation fees etc.). So now they are requesting for gov to pay more (in billions) than the contractual amount to enable the ships to resume. Gov refused. Hence, such a fiasco. LCS will probably cost few billions (upwards 2-3 bil) per ship than 1.5 bil as signed in contract. Good luck to us :(
Korean consultation fees?
@Joe
Nice, appreciate the comparison Joe. Yeah sure the increase is minimal but it sure is a proof that we are at least maintaining the annual budget allocation. Obviously we didn't get to see any big ticket announced since 2020 due to the pandemic. Hopefully the money saved would be used wisely in 2022-2025 where we could see the early result of our past 3 years of planning. My big concern is what are going to get for the MALE UAV.
Luqman,
Anka is priced for a reason and it's not expensive if we compare it to a U.S. system. Lets not even mention Wing Loong as poltical considerations means we won't buy it.
Also, even if Anka is expensive, if it meets our requirements then in the long run it will be a good return in investment,not to mention the fact that we need a certain level of quality to make up for the lack of quantity or mass.
We need a UAS which is not too expensive to fly and maintain, one which is already integrated to carry certain payloads and one we can operate for a certain period of time without worrying about product support and wear and tear.
Yes we have to change the way we do things if we're ever going to energe from the rut we've long been in but it will require deep poltical and institutional changes to the whole defence policy,not just ptocurement.
Althought these excerpts are in reference to another country, they could also be applied to Malaysia where an overstretched and under resourced MAF has to deal with poltical and public indiffrence, not too mention a clear appraisal of the role the MAF plays both in peacetime and times of conflict.
"The issue is not just a matter of funding and size, but also under utilization of existing assets capabilities or acquiring in sufficient capability"
"Politicians fail to understand the fact there is no surplus equipment that we can acquire to shore up our defences like there use to be in the 1960's, and what equipment is available takes time to regenerate and requires a significant investment in training, that still doesn't compensate for institutional knowledge and experience."
"There is also a failure to understand at a political level that the nature and way wars are being fought has changed"
@Luqman
"it sure is a proof that we are at least maintaining the annual budget allocation"
At what cost? The over budget is RM 332Bil and that is only possible cuz we lifted the debt ceiling, we are spending today what we pay by credit card. Unfortunately, in politics, it would be a courageous decision to lower it, and indeed it had taken down a ruling Govt before so due to political expediency our children will be paying for what we spend today.
AFAIK Govt yearly budgets don't roll onto the new year, unless its something from RMKs, hence why many agencies & ministries do rush to buy something during Q3-Q4 in order to finishup the budget.
"its better to change the procurement policy"
Santa Claus has a higher chance of being real than this every happening. No one involved in it will want it to change. No Government will want to change policies that put it into power. And defence procurement had always been murky waters in any country as it has security implications. Airing our dirty laundry out to dry only works to our potential adversaries benefit.