2025 National Security Budget. Updated

A CGI of the Fassmer MPV90. MMEA MPMS will be slightly longer at 95 meters. Fassmer.

SHAH ALAM: PMX DS Anwar Ibrahim today announce an allocation of RM40.6 billion for the national security sector from the RM461 billion 2025 national budget. This is an increase of RM2 billion for the sector which includes Home and Defence ministries, from the 2024 budget of RM38.7 billion.

Defence got RM21.1 billion allocation, an increase of RM1.4 billion from last year, while Home will get RM19.5 billion, an increase of some RM500 million. Others have made the calculations that the Defence’s stake of the budget is 1.2 per cent of the Malaysian GDP. That said most of the allocation is for salaries and other stuff and not assets.

Operational Expenditure for Defence in 2025 is RM13.363 billion while Development Expenditure is RM7.492 billion. The OE allocation is an increase of some RM1 billion while the increase in DE is around RM450 million. The highest increase in OE is for the emolument (salaries and allowances) which amounted to RM8.773 billion. It is interesting to note that the increase in DE is for services and supply (RM1.906 billion) while asset procurement is down to RM5.585 billion, down by some RM250 million from last year.

From the DE, the Army will be getting RM1.197 billion, of which RM218 million is for construction of new facilities and RM980 million is for assets. RMN is getting RM2.25 billion, RM150 million (facilities) and RM2.1 billion, assets. RM2.3 billion is for RMAF, RM65 million for facilities and RM2.2 billion for assets. For the three services, RM663 million is allocated.

Meanwhile, funding for staging
LIMA 2025, RM30 million is allocated under the OE. The ministry is also getting a one-off allocation of RM50 million for the Asean 2025 chairmanship (as with the Home Ministry but RM15 million) and another allocation of RM50 million for the National Service Programme (PLKN).

Although the allocation for Home saw an increase of RM500 million, this is mostly for OE. The OE for 2025 is RM15.27 billion, an increase of some RM1.5 billion from RM13.984 billion. This is offset by the decrease of a similar amount of the DE, which is now RM3.925 billion compared to RM5.079 billion. Supply and services for DE shrank to RM252 million for 2025 compared to RM1.233 billion in 2024. Asset procurement shrank RM3.673 for 2025 compared to RM3.845 billion.

Graphic from the Defence Ministry which is self explanatory but without the details as mentioned in this post.

The bulk of the extra funding for OE in 2025, I believed, is due to the adjustment of the salary and allowances (including payments to veterans who did not receive pensions, those who opt out of service before 21 years, mostly Defence) for both ministries. The adjustment for Home is RM605 million while for Defence it is RM449 million. Hence the higher percentage to the GDP is an illusion of course.

The police are getting RM1.7 billion under the DE for various projects, while the Malaysian Maritime Enforcement Agency is getting RM570 million (see below for the explanation.).

Unlike last year, where Anwar announced various items to be procured by the Armed Forces in his budget speech, this time around he was more prosaic about them especially on defence. This is good of course as he announced that they will be buying 12 helicopters for RMAF. That said they are buying support vehicles and hovercraft for the Army but not HMAV and HMLTV yet.

Lebih 2.12 bilion ringgit peruntukan aset khusus untuk PDRM
dan agensi beruniform di bawah KDN bagi menjamin keselamatan
dalam negeri melalui usaha bersepadu membendung peningkatan
kes jenayah selain mengekang anasir permusuhan yang memecah
belahkan rakyat.
Beberapa pejabat polis baharu dibina tahun hadapan dengan kos 2.1
bilion ringgit. Antaranya melibatkan:
• Ibu Pejabat Polis Kontinjen Pahang;
• Ibu Pejabat Polis Daerah Wangsa Maju;
• Ibu Pejabat Polis Daerah Petaling Jaya; dan
• Balai Polis Tanjung Minyak, Melaka.
Kerajaan akan terus memastikan kesiagaan penuh Angkatan
Tentera Malaysia dengan 5.8 bilion dikhususkan untuk kerja-kerja
senggara dan pembaikan serta perolehan aset-aset ketenteraan
baharu.
279. Bagi memanfaatkan kontrak senggara, program baharu
PROTEGE – Veteran akan diperkenalkan khusus untuk mewajibkan
kontraktor menyediakan peluang pekerjaan untuk veteran ATM,
terutamanya yang punyai kelayakan TVET.
Tumpuan khusus juga diberikan untuk membangunkan industri
ketenteraan tempatan melalui pemindahan teknologi daripada pembekal
aset ketenteraan dan menggalakkan pemain industri tempatan
menembusi pasaran eksport. Sebagai contoh, syarikat tempatan
Aerodyne yang muncul sebagai penyedia perkhidmatan dron utama dunia
wajar disokong untuk mengeksport aplikasi keselamatan kawalan
sempadan.

He was more detailed about the things they going to fund for the Malaysian Maritime Enforcement Agency (MMEA) though.

Acap kali ditegaskan, isu Laut China Selatan perlu diselesaikan di
meja rundingan. Kita kekal dengan pendirian bahawa ini boleh ditangani
secara aman, kendatipun tidak bermakna kita bertoleransi dengan hak
dan kedaulatan negara.
282. Aset-aset perairan akan ditambah dan diselenggara. Ini merangkumi
perolehan baharu di bawah Agensi Penguatkuasaan Maritim Malaysia
iaitu:

• 6 kapal di bawah Ship Life Extension Programme Fasa 2;
• Sebuah kapal Multi Purpose Mission Ship; dan
• 2 Kapal Ronda Generasi Baharu.

As for the MPMS mentioned above it is likely that a tender will be reissued soon or more likely next year. Will it still be the same ship they sought in the cancelled tender? My guess is as good as yours. The OE budget for MMEA under the 2025 budget is RM697 million.

— Malaysian Defence

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28 Comments

  1. Will lets hope the talk and plans translates into action. Until the MMEA is adequately equipped the only entity able to fill the gap is the RMN. In the long term the MMEA requires not just the hardware [including UASs and fixed wing platforms] but also an improved shore support infrastructure.

  2. Probably the arms forces should adjust their plans to fit into 1% of GDP rather than hoping, wishing one day someday that the bulan would jatuh ke riba.

  3. Seems nobody is listening 🎧 to us here. To tell the truth, I half expected the budget would turn out this way, with Defence and Security each getting 1% each.
    I kind of wonder 🤔 who is speaking up for those who like to see increased spending on Defence.
    Or perhaps the Police should give way to have a way smaller share of the budget to make way for Defence IF we are really short of dough to pass around.
    We basically need better educated, impervious to corruption and trained police officers, not buying them more armoured vehicles and fancier weapons.
    Leave that to the Defence Forces.
    But I suppose there are plenty of YBs with high IQs who knows defence matters like the back of their hands who can advise the PM well. Bah!

  4. Zaft “Probably the arms forces should adjust their plans to fit into 1% of GDP”

    Probably factor in the fact that they are already operating on a show string and have already made all the cost cutting measures they can. It’s not as if they’ve been flushed with cash all these years and suddenly have to deal with a penny [or in out case “cents”] pinching government.

  5. Malaysia as a whole have been bled by blanket subsidies as well as inefficient taxes . Some of the subsidy is indeed beneficial and worth continuing (with some adjustments) like in healthcare and education, while others like fuel or sugar and cooking oil subsidies only benefit the rich class. And then there’s SST which shouldve been replaced by the more effective GST/VAT years ago. Hell, even the loss of revenue from untaxed, smuggled cigarettes that is sold in Malaysia is worth 5 billion ringgit annually.

    To actually propel Malaysia into high income status they need to address these issues head on and stop beating around the bush. People voted for this madani government to see change so they have to act on it

  6. … “Seems nobody is listening 🎧 to us here”

    Sound like “…” now. You thought decision makers would listen to us here? Also, they have a lot of fsctirs to contend with; factors which may not be readily or easily apparent to us here.

    … ” corruption and trained police officers, not buying them more armoured vehicles and fancier weapons”

    From the days of the Emergency through Merdeka and the 2nd Emergency; the police have an a paramilitary tasking.
    Also, despite education levels; the coppers work under a certain system. Surely you’re not suggesting that better educated coppers won’t be corrupt.

    Taib ” Or perhaps the Police should give way to have a way smaller share of the budget”

    If you understand that internal security is a major focus for the government; you’ll know that a smaller budget for the police isn’t possible or likely

  7. Surely you’re not suggesting that better educated coppers won’t be corrupt.(Azlan)
    No, I am not. I leave corrupt practices to the politicians. They have better IQs to do so.

  8. Taib – “No, I am not”

    Ok because that was the impression I got from your “We basically need better educated, impervious to corruption”..

  9. Just curious, is the 2 NGPV is an addition to the previously announced 6 NGPV or a replacement to the previous announcement?

  10. Speaking of which what about that OPV 2 and OPV 3? Will the home ministry just ignore them and said that is not his project to begin with? while mmea desperately need those boats..Or will he just smile when MMEA receive that half a century,uscg ex cutters? shameless.Im not bringing politics here but Wt*

  11. Firdaus – “Will the home ministry just ignore them and said that is not his project to begin with”

    Has the Home Ministry ever said or implied anything to that effect?

    Firdaus – “Or will he just smile when MMEA receive that half a century,uscg ex cutters”

    Well some see it as progress or a reason to blow our own trumpets. Yes the MMEA needs ships but the fact that it has – in 2024 – to get a 5 decade old ship is an indication of how far we’ve sunk [mind the pun].

  12. … – “Probably called NGPV as the DAMEN OPV 1800 is almost identical in size and displacement to TLDM Kedah Class MEKO A100 OPVs”

    Why would they call it something similar to something already operated by another agency/entity; merely because size/displacement is comparable? Doesn’t make sense.

  13. will it be cheaper to focus on allocating more patrol duties to drones and manned assets to focus on defensive and offensive tasks?

  14. We need more drones but they aren’t a means to end. They have to be employed in parallel with other assets. Armed drones are great but they have not reach a point where they can replace things. They are supplementary; not a substitute for other things, yet.

  15. “Has the Home Ministry ever said or implied anything to that effect?”
    The silence is deafening. Why is this Govt ignoring OPV #2 & 3? Unless that budget for 2 new boats is meant to complete them.

  16. “is an illusion of course”
    Like everything else with this Govt? All is wayang smoke & mirrors that things are getting better. I just came back from overseas a week, during which budget was announced, and I was stunned by the inflation of things I usually buy. Was it a coincidence or due to that Budget? I shudder to think when the subsidy removal and tax hikes takes full effect. Defence wise, there is nothing to get excited at all.

  17. What things do you usually buy? The usual processed chicken I bought was around RM13 ringgit per pack, which was RM16 a month ago. Grade A eggs were RM12.60 per 30 carton pack which was RM13.60 per carton about a month ago. Oz beef depending on grade was around RM39.90 the same price as one month ago. At Pasar Besar Shah Alam, beef per kilo is around RM34 same as when I bought it for Raya.

    The 10Kg Rambutan Siam rice cost RM41 per pack (on sale at AEON) RM45 per pack at Hero Market. At Econsave the Gardenia white bread was RM3.90, and RM4.10 everywhere else.

    Cooking oil was the same as does RON95 petrol. Cucumber was RM2.99 per kg which was RM4.99 a month ago. Cauliflowers were expensive though.

    Nasi Kandar Sultan, one chicken breast, and vegetables was RM8.25 the same price last month. Shawarma at Seksen 9 was RM9 per piece same as last month, sourdough at Yusof bakery RM4.40.

    Mocha at Coffea Coffee was RM16 per cup and RM17 at Coffee Bean, mug regular.

    Of course, I am not rich enough to buy like gold bars or any thing like that. Yes, the 2025 Porsche Panamera and 911 Touring will cost around RM2 million or RM2.5 million if you ticked off all the accessories, much more more expensive than the 2024 Panamera and 911.

  18. I was refering to Firdaus asking if “Will the home ministry just ignore them and said that is not his project to begin with”. The Home Ministry never said anything to that effect.

  19. “What things do you usually buy?”
    I am not so rich, my family & I usually hunt for bargain stuff on regular basis. Things like bread which used to discounted to RM 2 now gone up to RM 2.50. Discounted milk from RM 1.50 to RM 3. Discounted fruits which from RM 1.50 to RM 2 now. All these just last Sat prices. You probably might not see it on full priced items as the rise you might not realise. Heck I might not even realise the rise if I werent away.

    I am also not rich to buy gold bars and Posh but we do scrimp for a nice holiday to get away from the madness here, spend where its necessary. And mind you we would have been catagorised as “T15 household” based on PMX benchmark.

    “The Home Ministry never said anything to that effect.”
    It is as good as sweeping things under the carpet. And why isnt the Opposition MPs raising about it when defence budget was put to Parliament? Both sides arent taking defence matters seriously.

  20. Ecoshop is still their bread at RM2.40 per loaf. I only go on holiday locally, mostly balik kampung or jalan2 cari makan. The only time I went overseas was when I went to defence shows or invited to attend companies’ facilities.

  21. The only time I go overseas these days is to the Philippines where various things [rice, fuel, water, gas, electricity, food, etc] are much more expensive and where inflation is much higher.

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