SHAH ALAM: Show me the money. With the world economy teetering with recession (some say its already in recession) and with the Malaysian economy with it, one may assume its not going to be smooth sailing for the national security sector.
Bernama is reporting that the government is already taking measure to reduce public spending. The Malay Mail posted the report datelined Kota Bharu which stated:
KOTA BARU, July 17 — The government is taking measures to save public expenditure by postponing or not continuing any project that has yet to commence, to enable money to be channelled for the welfare of the people, apart from efforts toward the country’s economic recovery.
Minister in the Prime Minister’s Department (Economy), Datuk Seri Mustapa Mohamed, said that the move was in response to a directive issued via the Malaysia Treasury Circular — Guidelines on Public Expenditure Savings.
“I have held meetings with the Public Works Department (PWD) and the Implementation Coordination Unit (ICU) on the financial position, to see the projects that have yet to commence.
“Hence, if it (project) is just about to start, there is no need to continue, while if something has already started, we will discuss which developments we need, either to defer or cancel,” he said.
Although the report did not specifically stated the national security sector, it is obvious from past experiences – 1997 and 2008 economic crisis – the sector will take a hit. It is for this reason, it is likely that procurement for completely new capabilities – the MPA and MALE UAS – may well be the ones that will be deferred. As the FLIT/LCA project is basically a replacement for a capability that need replacement it may well survived the austerity drive. But the numbers may well be lower than initially expected.
As for the LCS project, it also may survive the austerity drive as shutting it down again will have a tremendous impact on the local vendors. It is likely though the project may well be extended well beyond 2030.
Other projects like the LMS Batch II and the 4X4/6X6 are also likely the ones to be deferred.
— Malaysian DefenceIf you like this post, buy me an espresso. Paypal Payment