Malaysian Defence Budget 2015

SHAH ALAM: Defence Ministry got RM17.7 billion in the 2015 budget, an increase of almost RM1.6 billion compared to last year. The Operational Expenditure for 2015 is RM14.144 billion, an increase of some RM789 million compared to same period last year. The OE breakdown is RM6.796B for emolument and RM7.167B for other purpose (operations and maintenance). The amount allocated is about 1.5 per cent of the GDP.

The Development Expenditure (DE) for 2015 is RM3.618 for compared to RM2.744 billion in 2014. Between 2011 to 2015, the amount of DE will amount to RM15.8 billion while the OE is around RM50 billion.

Unlike last year, Datuk Seri Najib Tun Razak did not say how the DE money is to be spend but since the AV8, LCS/SGPV (below) and A400M projects are still on going, we can expect much of the RM3.618 billion will be spent on these projects.

In his speech, carried by Bernama (the national news agency) Najib said “to increase the level of safety and public order as well as national security, RM17.7 billion is allocated to the ATM while RM9.1 billion, to the PDRM. A sum of RM804 million is also allocated to Maritime Enforcement Agency Malaysia to strengthen maritime enforcement.

“The Government is committed to reducing the crime rate in the country, one of the NKRAs. For this, the Government will increase the intake of policemen by 11,757 personnel, build 14 Police Headquarters (IPK) and Police Stations including a new block for IPK Perlis as well as strengthen the PDRM police patrol through the purchase of 1,000 units of motorcycles.The Government will also allocate RM121 million for PDRM to implement various programmes under NKRA.

“To increase the readiness of ATM’s personnel and assets, RM7 billion will be allocated to purchase and maintain the defence assets. Apart from this, the welfare of armed forces personnel will also be improved, including health services and housing.

“Meanwhile, to improve maritime safety, APMM will be allocated RM393 million. This is for improving operational efficiency and the purchase of seven new patrol vessels.

Despite the rhetoric on Sabah and Sarawak, not much is being provided in the 2015 budget. Najib in his speech said:

“Sabah has a long and wide coastline. To enhance security in Eastern Sabah Security Zone (ESSZONE) and Eastern Sabah Security Command (ESSCOM), the Government will allocate RM660 million.

“Two battalions comprising a battalion PGA PDRM and an Army battalion with 1,280 new personnel have been approved. Two new camps will also be built in ESSZONE, namely Kem Batalion 20 PGA in Beluran and Kem ATM in Felda Sahabat, Lahad Datu, Sabah.

“In addition, military and security operation equipment will be further improved, such as procurement of high-capability monitoring radar. The Government will also use a modified oil rig and an auxiliary vessel as Sea Basing in the ESSZONE waters, with an allocation of RM230 million through Petronas CSR programme.

“Furthermore, to enable high-capacity aircraft to land, the Government will upgrade the runway at the airport in Lahad Datu, as well as relocate Squadron Hawk from Butterworth to Labuan, with an allocation of RM50 million.

“The Government will also relocate water villages in Semporna and Sandakan in stages. The Government hopes that through the initiative, the safety of Malaysians in Sabah will be safeguarded and economic activities to rebound.”

The Hawk squadron relocation to Labuan is interesting, though. As RMAF Hawk fleet is down to 19 aircraft (six two seaters and 13 single seaters) one has to wonder whether this means that all of the Mk208s will be based in Labuan and the fast jet training will be left to the MB339CMs and the six Hawk Mk108s. More on this when information is available.

— Malaysian Defence

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1 Comment

  1. ilitary fans says:
    January 11, 2015 at 7:45 pm

    How about the air defence for Kedah class…the NSM and exocet block III is only for Surface to surface not for surface to air targets. So is likely the ships is not protect from the air strike. We not expect war or any conflicts with anyone but it is good if we prepare for uncertain situation especially the South China sea is always in tension not only with China but with several countries. The Kedah class can be fix and design for fix with RAM system. Anyway to fix the Kedah class with exocet block III and NSM is good choice where the both missile can hit the land targets.
    Military fans says:
    January 11, 2015 at 2:28 pm

    Bro about KEDAH Class Meko OPV the ex Defense MInister did mentioned will up grade the weapons system to the ship. According from the local news paper report’s some where year 2013 the ships will equip with NSM or exocet missile but till now and the minister already transferred to KDN but the ships remain arms with cannons. The Kedah class capacity with full load is 1860 tonnes if am not mistake and the full load weight is more heavier than Sigma class Indonesia. Means we are wasted the Kedah class capabilities and if all the Kedah ships equip with missile then the Kedah class become a very capable corvette ships. Currently the Kedah class function is more to escort ships. If the Kedah class equip with the missile so then the current duty carry by the laksamana class corvette can take over by the Kedah class. The Kedah class also can be equip with RAM and for the OHT the Brahmos, Otomat or Yakhont missile can be fix to the ships. The laksamana class ships can be carry the FAC function which is currently carry by the Handalan and so on which is the age reached to the 40 years.

    As I had mentioned in another comment, if the RMN request for new missiles in RMK11 is approved (all of it – I have no idea how many) it is likely that they can spare a few for the Kedah class. They are already fitted for for missiles and integration had been done. Just need to fit the launchers – two per ship or could be four – and they are good to go. Not Brahmos or Yakhont type ASM though as they need to modify the ship’s hull to fit them so it is unlikely. Most likely NSM or Exocet Block III.
    Yap says:
    October 14, 2014 at 11:40 am

    Anyone knows where will the 14 new police headquarters be built? Ive already done my research but to no avail. Not one article seems to elaborate on it.

    I am also wondering is 1000 motorcycles for patrolling is enough for the whole of Malaysia.

    Most likely the new Police HQs are to replace the current ones which were built in the 60s/70s. They have been supplying motorcycles for general duty policemen for some time now, at least for the last four annual budgets I believe.
    Azlan says:
    October 14, 2014 at 9:39 am

    The decision to withdraw the Hawks from Labuan was because maintaining servicibility rates there was difficult; given the support infratructure [like the Adour test bed facility and other support gear] were in Butterworth. The decision to later only have 2 squadrons was driven by logistics, manpower and the high attrition rate. We were the 2nd, after Oman, to order the 100/200 series but the first to get it; as such we suffered from ”teething” problems and humdity issues which were solved with BAE Systems and the Defence Export Services Organisation.

    Other problems in the mid to late 1990’s were a higher than expected usage rate and shortage of ground support crews: this was confirmed by RMAF Chief Lieutenant General Abdul Ghani in 1995. Later on we were also late in awarding a overhaul contract for the Adour – which we only signed for in 2009. The spares issue was mostly resolved after we signed a contract in 2007. What I found surprising was the decision to launch Paveways from the Hawks.


    The RMN’s Jerong class is Lurssen’s FPB 45 design which is different to the RSN’s Victory class Lurssen design. The RMN operates no other Lurssen design and yntil the LCS enters service has no other ships of similar or shared design to the RSN.The only other ships both had of similar design were the ex-USN LSTs.

    I think they decided to launch the Paveways using the Hawks was because the familiarity of the ground crews and the weapon…
    anuar says:
    October 13, 2014 at 10:05 pm

    Salam Bro…can our Kedah class NGPV or Lekiu class being upgrade using towing sonar? what a different between mounted hull sonar and towing sonar…pro n con( in detecting subs) ?

    Both can be fitted with towed sonar of course but it will be a quite an extensive modification. Its better to the hull mounted sonars, as the system can be further away from the ship enhancing the detection and also isolating the ship’s own noise. However the ship must maintained a steady course and speed to prevent disturbance to the detection.
    Tomahawk says:
    October 13, 2014 at 7:28 pm

    KFX=F-5E class. Tata why.
    madokafc says:
    October 13, 2014 at 6:14 pm

    for ….says

    TNI AU need a multirole with air superiority capability fighter to replacing F-5 tiger used in Skuadron 14 based in East Java. The needs is immediate and we can’t wait much longer until KFX programme is ready (in which still an issue if the programme will be successful or not in near future), so we need an advance 4.5 gen fighter to ensure the 14 skuadron combat capability to meet our near terms objective. The candidate in the list is Grippen NG, Su-35S and F-16 Block 60/62
    … says:
    October 13, 2014 at 4:11 pm

    I dont understand why indonesia need to look at other options like the gripen and su-35 when they already committed themselves to the KFX. For stopgap while waiting for the KFX to be ready, IMO additional used F-16s will be much better suited to their needs than totally new model.
    Hasnan says:
    October 13, 2014 at 3:40 pm

    Weird…minister said the migs will be phased out in 2015 yet the replacements not budgeted.
    If you can make do with hawks then might as well lease the gripens instead of the long winded procurement process
    kerberosWXIV says:
    October 13, 2014 at 1:30 pm

    Any latest news on the MRCA project? RSAF is reported to be expanding its F-15SG fleet to 40 while TNI-AU is looking into getting Su-35/Gripen…
    Tomahawk says:
    October 13, 2014 at 12:14 pm

    Lurssen right? Same kindda design like the RSN MGB? RMN also have same design ships.
    … says:
    October 13, 2014 at 12:12 pm


    IMO the serviceability issue of the hawks in labuan is caused by the scarce number of remaining hawk airframes (19 units) to be divided among 3 skuadrons not to mention the logistics issue. So it was decided at the time to disband the 9 skn labuan and concentrate all hawks in kuantan (6 skn) and butterworth (15 skn)

    If I remember correctly, the number of Hawks started dwindled after they left Labuan not during their stint there. Without delving into records, I could only remember of one fatal crash involving a Hawk 208 in Labuan, I believed it was before they moved away from there but I am not really sure.
    Azlan says:
    October 13, 2014 at 12:58 am

    Tomahawk – ”Last time both rsn and rmn use same kind of ship.”

    What ships were these?

    When Singapore joined the Federation she only had the Panglima, which was built by United Engineers. She – as KD Panglima – was used for patrols in the Singapore Straits during Konfrontasi and was later given back to Singapore.

    As for the number of airframes needed to be able to maintain a 24 hour QRA, it is telling that a few years ago the head of the Czech air force said that with only 12 single seat Gripens, it was difficult to maintain a 24 hour QRA in line with NATO commitments and simultaneously have enough serviceable Gripens for other taskings.

    The challenge for the RMAF will be to ensure Hawk serviceability rates at Labuan, given that the support infrastructure is at Butterworth and elsewhere. The RMAF previously – a number of years ago – stated that maintaining Hawk serviceability at Labuan was an issue.
    Amatamin77 says:
    October 12, 2014 at 11:25 pm

    I wonder if the movement of the hawks has something to do with butterworth base standing down?…why 15 Sq? Isn’t that the training unit with hawk 100s?
    The logical choice would be to move 6 sq hawks from kuantan over to labuan… provided off course they get m ig replacements in time…else some sukhois need to be based in kuantan…
    kamal says:
    October 12, 2014 at 8:09 pm

    just my wet dream, hoping the APMM new boats will be armed with kick ass guns like the vulcan 20mm gattling gun and 40 mm l70 cannon…..but it will be an overkill i suppose

    One stabilised remote 30 or 20mm cannon is good enough for me with two 50 calibres for close in encounters.
    Tomahawk says:
    October 12, 2014 at 7:35 pm

    Oh i mean ambassador 3. Last time both rsn and rmn use same kind of ship.
    … says:
    October 12, 2014 at 6:31 pm


    For a person who covers military matters and have a close contact with military insiders you often have strange replies to the readers.

    4 not enough? Keywords – rotation, detachment, additional to the hawks.


    Raf Falklands typhoon flight

    NATO Baltic air policing

    As for the new boats for apmm, it is long overdue, and please dont say bousted got to supply it too. Give it to others la. As for the budget, a few nice affordable ship designs are available from countries like Australia, Netherlands, Bulgaria, South korea to name a few…

    Yes four Typhoons will be enough for TDY at Labuan.
    Tomahawk says:
    October 12, 2014 at 6:15 pm

    Buy from st marine. Put past behind. It sg interest to see my sovereignty not dispute. Some thing like ambassador 2 st marine build for this egypt.
    stanman says:
    October 12, 2014 at 2:18 pm

    Plenty coverage from Gong Kedak. That’s why can transfer to Labuan.
    SgWay says:
    October 12, 2014 at 2:14 pm

    Rm350 million for seven APMM boats…what kind of boats can be bought between RM30-50 million….

    Hopefully its not NGV Tech getting the contract.

    NGV Tech assets is waiting to be sold by its creditors so it cannot be bidding for the contract. Where do you get cheap thing nowdays….? Anyhow Perlis Marine Engineering built 5 25 metre patrol boat for Polis Marin for RM54 million.
    Azlan says:
    October 12, 2014 at 1:27 am


    TNI-AL’s Su-27/30s are home based at Makassar [Sulawesi] – barely 20 minutes flying time to easten Sabah. The jets at Natuna [which are closer to Sarawak] are not aimed at us but at protecting their interests in the area. If we base 18 Squadron in Sabah, it would be difficult to maintain a 24 hour QRA in Semenanjung – especially given that the Fulcrums will pencen next year. Also, Marhalim has a point, according to the press releases for the various Hornet upgrades, completion date is only in 2016.
    Nimitz says:
    October 12, 2014 at 12:10 am


    Why worry about counter deploy Hornet from Butterworth just because TNI-AU forward deploy SU27 to Natuna? Gong Kedak is better positioned to cover SCS (and Natuna). TNI is busy with creating more control points to better secure existing sea & airways in their territory, which could be turned as choke points against enemy that have to come in either from air or sea.

    The rebasing of Hawk closer to ESSZONE mirrored TNI-AU Hawks deployed closer to insurgency in Acheh though. New Army battalion, whether it is RRD/RAMD/RS or full time RAW have to wait until its announcement. Seven new patrol vessels MMEA, good for the agency who have been working mostly with 2nd hand vessels,have to lookout for its winning design & builder.
    … says:
    October 11, 2014 at 8:50 pm

    Another thing that tudm can do is to have a permanent rotation of 4 su-30mkm to set up a QRA detachment in labuan ala RAF Falklands or NATO baltic air policing. That detachment as a compliment additional to the permanent hawk skn in labuan.

    Not sure whether 4 Sukhois is enough to get at least 2 available all the time for QRA, with 8 maybe.
    … says:
    October 11, 2014 at 8:39 pm

    Interesting news about the hawk skn to labuan.

    In the beginning, all the hawks were divided into 3 skn’s.

    15 skn in butterworth
    6 skn in kuantan
    9 skn in labuan (later disbanded)

    So actually labuan has previously hosted a hawk skn before.

    Rather than standing up the 9 skn it is interesting to hear 15 skn butterworth to be relocated to labuan, leaving butterworth with just 8 units of f/a-18d hornets of 18 skn. Understandably it is because we are left with just 19 units of hawk 108/208.

    In my opinion, the least tudm could do is to get additional 2nd hand hawks to beef up our inventories. 2 countries comes to mind…

    Oman’s 11 hawk 209 and 3 hawk 109 (they bought additional f-16s and new typhoons)

    Uae’s 11 hawk 103 + retired hawk 63 for spares and their relatively new replacement wings (the hawk 103 not used for training, officially a ground attack squadron, but they got new airtractors and additional f-16s)

    With additional hawks from Oman and uae tudm could reactivate the 9 skn for labuan. And each of the now 3 hawk skns will have 8 single seaters and 6 twin seaters (14 planes for each skn)
    kamikaze says:
    October 11, 2014 at 8:27 pm

    The apmm getting 7 new patrol boats? Small ones I guess? Not that much money allocated for them…

    The budget I am told is RM350 million, guess where the company that reportedly in discussions to supply them comes from…
    zaidi says:
    October 11, 2014 at 9:24 am

    The procurement of small items related to Special Forces requirements are not usually revealed to the public for good reason. As the GGK is under the Chief of Staff i am confident that their needs will be met based on the perceived threats. As the general public we are not privy to these information. The incidents in LD, Ukraine and the formation of militant cells in the country are pushing the military to plan for these events and this is moving in the right direction. One can question the development based on conventional warfare, but this is necessary too. The use of Bunga Mas Lima is perhaps the most innovative way, good sea keeping, large deck areas and comfortable living quarters bode well for those on duty. Further more maintenance costs is competitive as it can be docked at most commercial shipyards. There is a lesson to be learned compare to the glamourous MPSS which I hope the Mindef would comission the institue of higher learning to carry out such cost benefit analysis for protracted operations in thr ESSZONE. Wallahu’alam
    Syarif says:
    October 10, 2014 at 10:15 pm

    Wouldn’t it makes more sense to base the FA18D Hornet squadron at Labuan AFB?
    With multiple threats ranging from Chinese naval incursions in SCS, possible Chinese ADIZ into North East Malaysian airspace, Ambalat unsettled issues to Sulu militants and Abu Sayyaf kidnapping threats. Bear in mind that Indonesia will be basing some of their Su27/30 in Natuna Island.

    Will be more expensive and not sure whether their upgrades have been completed yet.
    Syarif says:
    October 10, 2014 at 9:56 pm

    Nothing really exciting…

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