PETALING JAYA: With a budget of RM232.2 billion for 2012, the Government has allocated RM13.714 billion for defence, a reduction of some RM100 million compared to the RM13.823 billion which was spent in 2011.
To read the full planned 2012 expenditure, go Here
Although exact procurement plans were not mentioned, this was the first time that a more detailed expenditure, estimated or actual, was released. Such detailed expenditure had been published before but not in the planned budget document but in the Ministry’s’ annual report.
From the RM13.7 billion, some RM10.945 billion is for the management expenditure(salary, operations, logistics) and RM2.7 billion is for development costs(procurement). The administration allocation for 2012 is an increase of some RM400 million compared to last year while development see a reduction of around RM400 million.
Can we assume the RM400 million slashed for development had gone to pay for the increase in the soldiers salary as there is an increase of RM400 million for emolument cost in 2012?
It is interesting to note that for the development allocation, funds for asset allocation was reduced to RM2.6 billion in 2012 compared to RM3.292 billion last year while services and supply is set to increase in 2012 to RM309 million compared to some RM281 million last year.
Apart from that the operation allocation to all the services including the Joint Command for next year have been reduced although the number of personnel remained constant.
Another interesting number one need to see is the huge deficit in planned expenditure compared to the cost of the development projects. For example the Army projects (asset and construction) is RM8.18 billion while the planned expenditure for 2012-2013 is only RM1.44 billion. Its the same with the RMN, RM10.3 billion (cost of the project) while the allocation for next two years is only RM4.4 billion while for the RMAF its RM5.03 bilion and RM2.52 billion.
I guess they need to fund those deficit until the next Malaysian Plan to ensure the planned procurements can go through!
Based on the document, I am assuming that for the 10th Malaysian Plan the Armed Forces wish list cost RM24.748 billion. And for the next two years only RM8.837 billion is being planned to be spend on wish list. This year its RM2.768 billion (last year it was RM3.232 billion) so technically for next year budget the allocation should be around another RM2.8 billion to ensure that the planned projects will go ahead on time.
That said, they also need another RM15 billion or so to ensure that all projects planned under RMK10 can be completed within the next four years or otherwise, we may end up having something that was planned in 2010, being put into service in 2020 or further down road. Will Windows 7 still be the OS by that time?
By the way, the Home Ministry gets some RM10.7 billion. No figures for MMEA though.
–Malaysian Defence
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View Comments (34)
Marhalim
See the budget for MMEA under the budget for the PM's Office.
drop on military budget? I think isn't good news for malaysian army despite is just slightly reduction. So is very important for mindef person to reconstruct their procurement plant.
What i am writing is just a satire, please do not take it seriously. With only RM2.7 billion development budget, what can we buy hmmmm
Here are some ideas-
a)scrap the 257 AV8 and buy 257 BTR3E, same version as the Thai. Cost approximately USD270 million or RM810 million
b) Scrap the manufacturing of Colt M4 here, buy direct AK101. My guestimate for 50,000 rifles would be around US150 million or RM450 million
c)Scrap the MIG29 replacement program, just upgrade all 14 fighters to SMT standard (as done by india) at around USD15 million each or USD160 million or RM480 million
d) UP ARMED all the 6 Kedah OPV, with Exocet, RIM Missile, towed sonar and light torpedo. Estimated USD330 million or RM1 billion
But than again i just day dreaming, smoked too much
Underfunding project development and procurement from the beginning is a sure way to end up with cancelled programs, a lot of money wasted and nothing to show for it. All of this bluster about SGPV, MMRCA, AV8 and the end result will likely be what it has been for the past decade - wait for the next Malaysian Plan, insya Allah.
This is likely what the RMAF will look like in 10 years:
15 Su-30MKMs (3 lost to crashes or other incidents)
8 Hornets (with only enough flying hours left for LIMA)
5 MiG-29s (the rest cannabilized to keep the surviving ones flying)
1 F-5 (parked at an airbase entrance for show)
3 Hawks (the rest crashed, cannibalized or so on)
7 MB-339CMs (1 lost to ground accident)
20 PC-7s (flying coffins suitable for only the bravest recruits)
4 A400M (shiny new airplanes with constant maintenance problems keeping them out of service)
10 C-130s (still soldiering on)
10 EC725 (other 2 lost in incidents connected with overuse)
And so on...
This is likely what the army will look like in 10 years:
46 PT-91M (2 lost in fratricide incident during live fire exercise)
250 Adnans (serviceable, but constant problems)
Still inadequate logistics vehicles. And various other vehicles in dilapidated states, occasionally scene on the parade grounds. Everything else unsuitable for even target practice. Oh, and I almost forgot, 4 helicopters left.
This is likely what the navy will look like in 10 years:
2 Lekiu class (same old weapons and systems, no upgrades)
1 Kasturi class (KD Lekir ran aground in the Spratlys in pursuit of Chinese fishing trawler)
2 Laksamana class (1 lost in fire, 1 in collision with commercial vessel)
6 Kedah OPV (still no missiles)
1 Scorpene class (1 laid up in port with undisclosed technical problems - rahsia (state secrets))
A few other ships occasionally in service, but never far from port.
Reply
And yet they want reservists in all parliamentary constituencies...
basing on FareedLHS's comment...wow by 2021 we have quite an antique ATM operating 1970-1990's technologies. I bet by that time a captain of TDM starting tangga gaji is equal to a senior engineer in a MNC operation on our shores
Current procurement policy result in high prices and sub-optimised solutions. A typical example is SGPV-LCS. The first step is that BNS is assigned as the prime contractor. A logical step but it rules out all competition and any tendency to have a critical view on the costs of the prime contractor.
The result is that BNS is fully in control of sub-contracting the design, the systems and the weapons. Here arises a conflict between RMN interests and "business" interest.
The battle between Operational Interests, political interests and business interests has been fought numerous times in Malaysia in the past resulting in either a too high price for the required assets or an asset that doesn't comply with the interests of the armed forces.
The current budgets can be very well spent and can supply the armed forces with the required capabilities. The problem is that budgets are dictated by political and business interests and the actual assets are nothing more than a carriage to serve the poltical and business interests.
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They have to give it to BNS. After spending billions to save the dockyard after the Amin Shah debacle what do you expect? And the fact that the people who are supposed to fight, simply bend down and let the other rest trampled over the services....
Fareed
That is just tragically funny.
Fareed ,thats sad. Either ur so used to our military and its drama or u missed ur caffeine intake.
It's high time for an affordable malaysian to find a second country as a back-up plan. The politicians couldn't care less about the country's defense nor they understand other than money in for their pockets. It's sad but it's true. Malaysia is good only for a one nite stand. Malaysia is like pant's down from any military aggression. We're ill equipped and people are least informed on military matters. It's better to surrender than die standing if there's a war. Malaysia Boleh!
1 Fennec ditched off the coast of Somalia after receiving 2 RPG hits from a group of crack Somalian pirates...
Fareed, that is just bizarre and scary. I can see that the next move by the parliament is to abolish totally our fighters like NZ did.