SHAH ALAM: Budget 2019. Defence and Home Ministries. The national security sector – Defence and Home ministries – were allocated RM30.9 billion from a total allocation of RM314.5 billion of the 2019 budget. The allocation for the Defence Ministry under the 2019 budget (see latest story, for the latest figures) has been set at RM15.3 billion, a reduction of RM100 million from last year’s funding of RM15.4 billion.
From the RM15.3 billion, RM13.0 billion is allocated for the Operating Expenditure (OE), increased of some RM700 million compared to 2018’s figure of RM12.2 billion. The Development Expenditure however saw a marginal increase from RM3.297 billion in 2018 to RM3.647 billion this year.
Spent cartridges flies out from the Sharpshooter turret on the IFV 25 Gempita variant.
The Home Ministry received an allocation of RM15.62 billion an increase of some 300 million compared to last year’s one of RM14.7 billion. The OE allocation decreased by RM40 million to RM12.565 billion from RM12.9 billion in 2018. The increase in allocation for this year is for the DE which rose to RM3.087 billion this year compared to RM1.847.
PDRM Air Wing AW139 9M-PMC taken in Mar. 2017
This is likely due to the inclusion of the Malaysian Maritime Enforcement Agency (MMEA) which was previously under Prime Minister’s Department since it was established in 2005. Interestingly, the MMEA is getting RM469 million under the DE in the budget though most likely this is the payments for the NGPC and OPV.
The latest CGI of the MMEA OPV being built by THHE Destini.
Apart from MMEA, the Home Ministry is also now responsible for the Eastern Sabah Security Command (ESSCOM) previously also under the Prime Minister’s Department. For 2019, ESSCOM is getting an allocation of RM74.5 million compared to RM36.7 million. As usual no details were provided for the DE spending.
Polaris MRZR. PDRM bought 10 of these buggies for ESSCOM duties.
As for the OE for the military, it appears all three service got their budget slashed. RMAF took the biggest cut some RM500 million slashed from its budget, from RM1.455 billion last year to RM602.36 million. RMN one is cut from RM966.789 million in 2018 to RM 349.584 million in 2019.
Sukhoi Su-30MKM from the 11th Squadron – M52-09 and M52-18.
This will likely mean that RMAF flying hours will be cut while days at seas for RMN is reduced. It is also a clear indication that the upgrades for Nuri, Hercules and Hawks while funding to relife the MKM is also off the table.
RMAF A400Ms in a four aircraft formation at the Merdeka Parade rehersal.
Despite the cuts to the OE, it appears that the salaries and allowances of the military have been bumped up slightly, a good thing for morale of course.
Soldiers from the 10th Para Brigade at the 2019 Merdeka parade. PDRM picture
As for the DE, allocation for the three services and tri-service programs have been increased though it is likely that this are for programs already in the pipeline.
The recently delivered GM 200 radar which forms part of the Starstreak NG deal.
The Army DE budget increased from RM770 million in 2018 to RM877 million for 2019, most likely for the Gempita, MD530G, 105mm guns and the refurbishment of M109 SPH. The LCS and LMS program is also likely the bulk of allocation for RMN in 2019 which see a slight increase from RM1.259 billion to RM1.267 billion.
The latest CGI of the LMS.
RMAF DE budget also got bumped to RM349 million from RM223 million in 2018 but most are likely tied to the A400M procurement. Tri-service equipment allocation is also higher at RM410 million in 2019 compared to RM133.5 million in 2018 though this is most likely for the Starstreak NG deal and also the equipment for the new Joint Force headquarters being built in Kuantan.
*updated on Nov. 21. The Defence Ministry has received an extra allocation of RM1.4 billion to the OE allocation.
— Malaysian Defence
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View Comments (60)
For the development expenditure (DE or what i like to call CAPEX) we can safely guess that for TD and TLDM that would be mainly for the Gempita AV8, LCS Gowinds and LMS. For something like the TUDM's MKM overhaul, that is usually under operating expenditure (OE or OPEX) right?
As for the MKM overhaul, marhalim did you manage to ask more about it? I really want to know if the current 10 year overhaul could be extended to 14 year interval like what was agreed for IAF Su-30MKIs
Other TUDM items many would like to know is the status of nuri, hercules and hawk upgrades. Are they still on or has been shelved?
Same old years Budget. No MRSS, MPA and MRCA. That's all I can say
So.. no news about slep for migs? Now airforce strength & readiness are reduced for another year. Hope nothing happens during this phase.
Breakdown in the Development Expenditure
Army RM877.3 million
Navy RM1267 million (RM1.267 billion)
Airforce RM349 million
Tri-service RM410 million
As for the MMEA Development Expenditure, RM469 million for 1 year is IMO plenty to fulfil the services Pelan Perancangan Strategik Maritim Malaysia 2040 (PPSMM 2040) . Continuous expenditure of the same amount annually will amount to more than USD500 million per rancangan malaysia 5 year plans, which can easily buy more OPVs like my plan here
https://www.malaysiandefence.com/apmm-plans/
With that kind of DE budget, i believe MMEA could aquire the numbers of OPVs and PVs that they wanted (if they stick to what kind of ships they are getting now and resist the temptation to goldplate), and TLDM could pass all the OPV works to MMEA in 5-10 years time.
Starting 2021 (rancangan malaysia ke 12), IMO the DE for all 3 services should be at least RM1.5 billion per year, or we can forget about even getting LCAs or MRSS.
Deficit at 3.7 .LOL. Now ph make more debt than najib.haha.
The govt have to make do what best out of a bad situation. I think the entire armed.forces have to be restructured. For eg Navy 15 to 5 is a good start. However can we combine the bases. Can we reduce airbases by 2? How much can that save without cutting down on training for example? Do we need so many types of transport planes..do the RMAF have to operate VIP planes? How big is our army? How about reducinh duplication of roles between Home and Defence.ministry.
Its hard questions during hard times. We need to save to spend more on DE and operational OE esp training
Just wondering, since next year there is a special allocation of 15mil for LIMA'19 next year, would this cover the costs for the airshow TUDM usually flies or is TUDM expected to cover it within it's own operational budget?
Reply
It will cover the cost of the airshow including RMAF
Already no $ for extend mkm life..now cut additional mean ask our RMAF use Hercules/A400m to guard our home?
Where is our Mat Sabu..diam sahaja? U can't do anything because the final decision is from Minister of Finance & PM.
I don't get it. Does it mean the funding for continuing MKM slep has been cut? Are they trying to mothball the fleet so soon?
Reply
No they have not started the MKM SLEP yet.
Sorry to be pedantic but a reduction to 13.9 from 15.4 billion is 1.5 and not 1.9 billion.
Reply
Yes you are right, my bad.