SHAH ALAM: Ground hog day. The Unity government national security sector budget will follow the same script as the one proposed by BN-PN government last year. Malaysian Defence had previously stated that the government set-up following GE15 will follow or made slight changes to the proposed budget as they will not have enough time to devise a completely new one.
Defence Minister DS Muhamad Hasan in his new year address at Wisma Pertahanan today said the government is likely to propose a RM17.4 billion budget for the ministry, with an OE of RM11.4 billion and a DE of RM5.9 billion. This is the same allocation in the proposed budget.
The defence budget is RM17.4 billion; 0.47 per cent of the total budget or 0.98 per cent of the 2021 Malaysian GDP, which is much lower than the 1.5 per cent sought by the Armed Forces shortly before the presentation of the budget.
The operational expenditure for 2023 is RM11.4 billion (RM11.1 billion for 2022) and the development expenditure is RM5.964 billion, an increase of some RM900 million from the 2022 figure of RM5.039 billion. This mean there is an increase of around RM1.3 billion for defence in the 2023 budget. However, in US dollar terms, it is a decrease of around US$200 million.
It was for this reason, Muhamad said that they will continue with the procurement of the MPA and MALE UAS, together with the planned purchase of the 155mm SPH; Malbatt replacement APC and the High Mobility Armoured Vehicle (HMAV). Former Defence Minister DS Hishammuddin Hussein announced the procurement of the HMAV together with unarmoured 4X4 vehicles under a contract worth some RM2.04 billion shortly after the proposed budget was tabled in Parliament.
It is unclear however whether the new minister and the Finance Ministry are aware that both the HMAV and 155mm SPH were awarded LOIs through direct negotiations instead of tender. Hopefully, the people in the defence and finance ministries will ensure of the fact before awarding the Letter of Award (LOA). That said the LOAs might already been signed.
Anyhow, despite saying the LCS project will be revived, Muhamad said he will table the proposal for the resumption at the Cabinet soon. Hopefully, by then we will know how much it will cost.
— Malaysian Defence
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View Comments (28)
Marhalim, do you think there is time for an official signing of some of these acquisitions by LIMA in May?
They have to actually so can end the show with figures higher than the previous show. Show signings for more likely as I reported previously that LOA for MPA and MALE UAS have already been signed. I do not think there is enough time to sign the LOA for FLIT/LCA at LIMA but stranger things had happened. Army stuff they will hog it for DSA next year. RMN stuff nothing so far but they could do show signings for smaller stuff
Lets hope they cancel the LOI for the Yavuz SPH. The Nezter Ceaser is much cheaper at RM33+m
I am always perplexed what are the difference between ARV, fitters, and engineering vehicles. Most of the time they kinda looks similar to the others.
@Hasnan
They could cancel and not get anything as what Pakatan did during their 1st gig in Govt.
ARV and fitters both are operated by JLJ while AEV and EV by RAJD.
The diff between ARV and Fitters is the role...ARV is for recovery of damaged vehicle while Fitters are for FRT team use to repair vehicles in the field like changing an engine without being towed to base workshop.
Marhalim,
"...both the HMAV and 155mm SPH were awarded LOIs through direct negotiations instead of tender. Hopefully, the people in the defence and finance ministries will ensure of the fact before awarding the Letter of Award (LOA). That said the LOAs might already been signed."
If this contract continues, does it mean the Yavuz and Tarantula is a done deal? Perhaps there will not be much difference between the Anwar government and the previous.
Hasnan - ''The Nezter Ceaser is much cheaper at RM33+m''
Maybe but do we know how much parts will cost? Do we know how much something will cost to sustain for say a 25 year projected period in service?
Until or unless we know those facts let's not get into the cheaper is better mode.
Personally I prefer a fully automatic system as it does away with the need for the crew to be out in the open fully exposed to the elements and shrapnel.
Yup if the LOAs were signed they may well go forward with it. Anwar can say it was my predecessors who did it
@tikmon
Thanks for the insight!
"prefer a fully automatic system"
Eventually the crew still needs to exit and reload once the preloaded rounds have been exhausted. In a sustained barrage operation, thus there's no difference between a fully or semi system.
"Anwar can say it was my predecessors who did it"
As previous Pakatan Govt taught us. Rule #1 when taking over: Always blame the predecessor even if nobody is asking.
In a fully automatic system, the reloading is usually by the crew and the reloading crew with the resupply truck a. And it usually done outside the range of the adversarial system.
Marhalim,
By ''LOA'' you mean ''Letter Of Agreement'' rather than ''Letter Of Award'' correct?
Ed - ''Perhaps there will not be much difference between the Anwar government and the previous.''
Where you under the impression that this government would actually make sweeping changes in policy or how we do things?
It's the Letter of Award, which means the contract or the Surat Setuju Terima (SST).