Strengthening National Defence Requires Additional Allocation - PM Anwar

PUTRAJAYA, Aug 18 (Bernama) -- Malaysia needs additional defence spending, potentially ranging from hundreds of millions to billions of ringgit, to ensure it has sufficient assets and capabilities to address an increasingly complex security environment, Prime Minister Datuk Seri Anwar Ibrahim said.

Anwar, who is also Finance Minister, said the need should be viewed against shifting regional geopolitics, increasingly shaped by tensions between the United States and China.

He said the issue required open discussion as Malaysia assessed its security needs, including strengthening its defences in Sabah.

“The government had increased defence allocations over the past two to three years in response to changes in the regional security environment.

“This is no longer an ordinary region. It is increasingly becoming a focal point of tensions between two major powers, the United States and China,” Anwar said at the closing of the Budget 2027 engagement session here today.

Anwar said Malaysia must continue maintaining good relations with both China and the US to safeguard its national interests amid geopolitical developments.

The Prime Minister also highlighted security developments in the southern Philippines, particularly given its proximity to Sabah.

He said Balabac Island in the southern Philippines, the nearest, or just 20 minutes away from Malaysia’s Banggi Island, had been developed by the Philippine government with the US as a major military base.

“As a close neighbour, and given the issue of the claim over Sabah, naturally we are somewhat concerned, although our bilateral relations with the Philippines are very good,” he said.

Anwar said the development underscored the need to strengthen Sabah’s defence capabilities, although Malaysia did not have the resources to develop military and air bases on the scale of those in Balabac.

“Do we have the capacity to develop military and air bases as sophisticated as those in Balabac? My answer is no.

“But at the very least, our basic defence capabilities must be strengthened,” he said.

Anwar said Malaysia must strengthen its defences in line with the changing regional security landscape, particularly developments with direct implications for the country.

The Budget 2027 engagement session was also attended by Finance Minister II Datuk Seri Amir Hamzah Azizan, Deputy Finance Minister Liew Chin Tong, Treasury Secretary-General Tan Sri Johan Mahmood Merican and Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour, alongside senior government officials, industry representatives, associations, non-governmental organisations, economists and academics.

Budget 2027 is scheduled to be tabled in Parliament on Oct 9.

-- BERNAMA