Malaysia’ defense 2019 budget was the lowest after 2017, with an
allocation of only US$3.87 billion, a reduction of 40 percent from its
allocated budget in 2018. Of this allocation, US$3 billion will be for
Operating Expenditure while the rest will be for Development Expenditure. The
budget represents a series of military and other “non-essential”
spending cuts in the country.
Source:
Malaysian Annual Budget Plan
Then there are the
scandals of corruption or incompetence or both. For example, there was the
RM300 million deal to acquire lightweight combat helicopters from McDonnell
Douglas. Two were delivered in July 2017 and the remaining four was supposed to
be delivered in 2018. To-date RM112.65 million has been paid. No signs of
remaining helicopters. In the meantime, the Nuri fleet of helicopters has been
grounded with a Nuri crash in August 2019. Maybe we could lease some to replace
those grounded? Then we have 28 Russian fighter jets but only 4 can fly. So
budget cuts, no spares, no fly!
The Navy is no better.
Only 2 offshore petrol vessels (OPVs) were supplied from a contract of 6 at a
cost of RM4.9 billion. The Ministry of Defence (MOD) paid RM4.26 billion in
advance buy only two were delivered. In October 2013, the Government signed an
agreement with another local shipyard for 6 littoral combat ships (LCS). About
RM6 billion has been paid but no sign of the ships. Delivery is now in 2023 and
may incur an additional RM1.4 billion.
The Army is the least
impacted by non-delivery of assets. Hopefully, its procurement of Deftech
vehicles and howitzers will be done by 2020.
We are left with
aircrafts that cannot fly, submarines that may not dive, and ships that are on
paper. The real problem is corruption, malfeasance and incompetence. But no one
is charged or taken to task!
We are very compassionate
people. We remind ourselves that this should not happen again. But it happens!
We hope that the Ministry of Finance will try to prevent history from repeating
itself. The MOD needs to target not 1% of GDP for defence but about 2% of GDP
by 2025. And take steps to rectify internal weaknesses on procedures. Then and
only then we may have a credible defence force in the region.
Reference:
1. Malaysia-Defense,
23/8/2019 www.export.gov
2. Malaysia’s
defence doldrums, Dzirhan Mahadzir, April 5, 2019
3. Billions lost in defence procurement
scandals, Dennis Ignatius, December 9, 2019
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