Defense Development Budget was slashed 50% by Malaysia

gancity

Defense Development Budget was slashed 50% by Malaysia

KLS：In order to implement "people centric" policy, Malaysia's government slashed defense Development Budget 2009 to 2.3 billion Ringgit, a decrease of 49.8 percent compared to the same period last year.
According to the Budget 2009 released by Ministry of Finance, the Ministry of Defense gets 13.2 billion Ringgit budget in which the Operating Budget is 10.6 billion Ringgit, an increase of 8.2 percent compared to the same period last year. However, the Development Budget not only 49.8 percent less than last year, but also almost 40% less than in previous years.
After the Development Budget was slashed drastically, its overall budget decreased 1.5 billion Ringgit or 10.47 percent. This move, however, is in line with the open speeches which made by high-ranking officials of Ministry of Defense previously that defense budget would be cut by 10%.
Defense budget accounts for 6.6 percent of the total budget in which Ministry of Defense is the fourth largest financed ministry that after the Ministry of Education, Ministry of Higher Education and Ministry of Health accordingly. This tremendous decision is in line with the government's "people centric" policy, that social and economic projects will be given priority.




The Budget 2009 says 10.6 billion Ringgit of Operating Budget will be used in most of the payment of salaries and the rest used in the procurement of uniforms, bullet and ammunition, spare parts, maintenance payments for aircraft, vessels, facilities and equipment.
Most of the Operation Budget will be used in the maintenance of the equipment in which an increase from last year's RM 440,056,800 to RM 891,685,500; followed by service and supply (from RM 5,195,989,400 to RM 5,440,132,200); its third, payment for emolument (from RM 4,134,536,100 to RM 4,247,222,600) respectively.
It is noteworthy that, ratio of Operation and Development budget reaches its peak of imbalance, 2005 is 1.9:1; 2006 is 2.1:1; 2007 is 2.3:1; 2008 is 2.1:1, and 2009 reaches to a serious imbalance 4.5:1!
Meanwhile, the Budget 2009 will eliminate 844 military posts that the total number of civilian and military posts in MINDEF, will drop from 2008's 170,739 people to 169,895 people. The most affected programs are Malaysian contingencies which stationed in overseas to support United Nations' peacekeeping operations.
As for the Development Budget, Navy faces the greatest impact in which its budget for arms procurement decreased significantly from RM 811.12 million to RM 100,000, followed by Army from RM 1,303.87 million fell to RM 136.1 million.
However, Air Force is not affected, in contrast having an increase from RM 1.482 billion to RM 1.613 billion, which believes large amount is to be used to cover the cost of procurement of 18 SU-30MKMs and 12 new type of utility helicopters.
Obviously, there will be no large-scale military procurement projects in 2009, except the authority may launch some programs that without using "real money".
In addition, Malaysia Maritime Enforcement Agency, which is paramilitary forces, gets RM 651 million for Development Budget, while its Operating Budget is RM 314.9 million, that total amount of budget is RM 965.9 million. Compared to last year its expenditure RM 188.64 million, it is nearly 5 times increment.

Editor's note: All information obtained from the Budget 2009; The Exchange rate between USD and Ringgit on October 21, is 1 USD to 3.5255 Ringgit

source from: http://www.klsreview.com/HTML/2008Jul_Dec/20081022_03.html

LT

itu pun kerajaan still cakap.....kita masih lagi teguh walaupun ekonomi dunia merudum, termasuk US. Kita masih kebal........

kebal amende, tak abih2 bagi maklumat salah kt rakyat pasal ekonomi ni. negara lain boleh declare ekonomi jatuh, tp politicians Malaysia masih nak cakap bohong.

Periuk_api1209

Originally posted by LT at 23-10-2008 05:33 AM
itu pun kerajaan still cakap.....kita masih lagi teguh walaupun ekonomi dunia merudum, termasuk US. Kita masih kebal........

kebal amende, tak abih2 bagi maklumat salah kt rakyat pasal ekonomi ...

memang le ade efect tapi kira masih boleh survive lagik maksud dia.....

kira walaupun kena pukul tapi masih berdiri lagi lah....lebab2,patah tgn,  berdarah sana sini tu biasa la adat org bergaduh.....tak ada la makn pasir kata org...

alphawolf

Ehhh dah nama pun ahli politik....mana2 brand parti pun diaorang pakai semuanya seghope ajer....

atreyudevil

Originally posted by LT at 23-10-2008 05:33 AM
itu pun kerajaan still cakap.....kita masih lagi teguh walaupun ekonomi dunia merudum, termasuk US. Kita masih kebal........

kebal amende, tak abih2 bagi maklumat salah kt rakyat pasal ekonomi ...

Hi! aku bru register kat forum nih..

Aku kurang setuju ngan statement nih.
Negara kita ni masik baik (brapa lama tak tau lah!)  lagi berbanding dengan negara, kuasa besar dalam dunia.
Kurang terjejas berbanding dgn negara dlam dunia nih
dan aku sendri ada terbaca artikel dalam business pundit yg meletakan kan Malaysia sbg negara ke 4 dari 10 sbg negra yg tak terjejas dari current economics issues selepas UAE,Armenia dan Morroco

http://www.businesspundit.com/10-countries-least-affected-by-the-us-financial-crisis/

mmc

LT ini bahagian kemahiran aku kan...aku baru lepas hadiri presentation ekonomi oleh bank antarabangsa dan mereka akui Malaysia kerana penangan 97 masih terasa dan kerana negara2 rantau ini (kecuali yang konon terer tulah) lembap dalam main benda2 exotic ini, tidak berapa terdedah kepada ancaman exotic jadi toxic ni..jadi ekonomi kita memang slow and steady aja...tapi sebab itu nak berbelanja lebih pun tak boleh, tak berjimat sangat pun tak boleh...kerajaan cuma boleh keep to course as you guys say..nothing spectacular will happen economic wise..lainlah kalau kembali bergantung kat resepi orang luar macam seorang tu suka sangat nak buat

atreyudevil

Harap-harap ekonomin Malaysia still bleh bertahan la, mmg aku perasan sejak recession 97, ekonomi Malaysia growing but at a very slow pace,
contoh nya KLSE naik 5 mata harinih, kalo turun besok 2 mata, lusa nak 4, tulat turun 1 and so on
Macam ni la rate dia aku tgk
Tp pasal aku nih bukan economic major, jadi tu je la pemerhatian aku bleh buat.
btw kalo salah betol2 kan lah ye..

[ Last edited by  atreyudevil at 23-10-2008 10:40 AM ]

jebeng

Btul tu...Malaysia boleh bertahan since kiter ade komoditi yg byk rather than singapore focused on industrial semata2....x dpt dinafikan kter kene gak efek nyer...baru2 ni pon ptt DSAI diberi kredit kerana x nk lagi mengacau bilaukan politik Malaysia n nk focused on ekonomi....

mcm thun 98 tu..mmg ekonomi slow giler and the next year its rebounce 8%... as politician,maybe ade juga kebaikan white lies ni...for not to trigger panic amongs people...bahaya kalo panic x terkawal...cth terbaik cam Indonesia time krisis 98...

hyazinth79

aku rasa korang mesti setuju yg paling sakit sekarang mestimya singapore, tak jd la dorang beli f35 nanti, walau macammanapun aku harap malaysia mampu bertahan dlm ekonomi sekarang.

Gemukkkkkkk

dalam keadaan camni, as a whole, sesuatu negara tak boleh ada kecenderungan menabung yang kuat kerana ini akan menghadkan pergerakan dana dalam sistem ekonominya.  pada masa sama, tak boleh berbelanja berlebihan kerana perlu ada tabungan hari hujan.

aku suka kerajaan susun semula sistem pembiayaan supaya jadi lebih affordable agar kebanyakan entiti masih dapat terus beroperasi keluarkan barangan atau perkhidmatan.

aku suka kerajaan galakkan rakyat berbelanja kerana ianya boleh jadi satu faktor pengganda dalam sistem ekonomi.

aku tak suka kerajaan bertindak masukkan dana ke dalam ekonomi melalui projek atau kontrak mahal kerana pergerakan dana seperti itu biasanya tak cekap dan 'melekat' kepada perut beberapa orang tertentu saja sedangkan tujuan asal adalah untuk 'pusingkan' dana secara menyeluruh dalam sistem ekonomi untuk menjana aktiviti yang menguntungkan.
pump-priming is not the be all end all method.

malaysia tiada unlimited funds jadi perlulah prioritisekan apa yang ada.  aku tak nampak apa masalahnya kerajaan cut back 50% spending.  mungkin bila malaysia dah kaya balik, kerajaan boleh berbelanja lebih kembali.

manusia biasa

aku rasa govt kita kena fokuskan juga pd perancangan pembelian bbrp barang yg dianggap pntg (walaupun bayar ansuran yg lama)

a.  peluru berpandu anti pesawat
b.  peluru berpandu (maritime version)
c. pesawat pengangkut mcm c 130

sbb nya, walaupun ekonomi agak slow, bende bende tu kira dianggap kritikal di negara kita ..

gancity

i thk focus on SAM & radar (should be cheaper than buying fighter jet & v hv very weak SAM equipment)...v hv A400M soon so no need rush for more... NGPV should slowlly continue in order to secure each island and border (recently TNI jst voice up the old petroleum issue in sabah)卆nd upgrade all old analog system to digital

mmc

ini aku ambik dari latest issue of Asian Military Review

MALAYSIA
Malaysia cuts Navy plans Malaysia抯 plans to acquire three new Multipurpose Support Ships (MPSS) have been cancelled as part of a government spending review, across all government activities, designed to cut overall spending by ten percent. Malaysia had previously announced its intention to buy the vessels under its 2006-10, Ninth Malaysian Plan. The Royal Malaysian Navy (RMN) is lobbying hard to have the MPSS requirement added to the 2011-15, Tenth Malaysian Plan. The cost of the new vessels was estimated at $1billion. If the MPSS requirement does go forward, analysts believe that numbers would be cut to just a single vessel.

Navy chief, Admiral Datuk Seri Abdul Aziz Jaafar, cited the need for the MPSS vessels to support anti-piracy patrols in the Gulf of Aden. These are currently being undertaken by a three strong RMN contingent, which includes the ageing and expensive to maintain support ship, the Newport class Sri Inderapura. These are not the only tribulations facing the Malaysia Navy. Adm. Aziz in a further interview said that two of its Kedah class OPVs had recently failed to meet requirements for operational readiness. At a time of financial constraint, the Navy also has to fund new capabilities, notably a new Submarine Command with the first crew due to be declared operational in January 2009.

Malaysia抯 Navy is not alone in feeling the credit crunch. The Army has had its plans to replace its Sibmas and Condor wheeled vehicles, acquired in the 1980s, postponed and the controversial purchase of as many as 12 Eurocopter EC 725s has also been pushed back. The Air Force is also expected to have to wait for prestigious new Early Warning and Control Aircraft.

http://www.asianmilitaryreview.com/CurrentIssue

dCrook

dapat berita dari member, dia kate KD Tun Razak skang ni kene hold dulu pemasangan peralatan dia sbb tak cukup fund.. sahih ke ni? dia dengar dari orang perbendaharaan sendiri..

mmc

peralatan apa lagi...sekarang dah sea trials bro..peralatan dah patut lenkap dah

Canaletto

Bai dia cakap Tun Razak bukan Tunku Abdul Rahman! Yang 1st one tu memang dah siap tunggu nak belayar balik aje!

mmc

dua2 dah pi sea trials la tak silap aku..KD TAR dah habes dan sekarang actual sea training phase dah dari apa yang aku baca before sailing tu..

pcboss

Harap anaknya takkan rosakkan nama ayahnya. Najib tgh dikemuncak karrier. Pasti dia boleh buat sesuatu...

nando

Article yg menarik tapi tak sebut langsung tentang batch 2. Jadi, mungkin ada harapan lagi batch 2 akan muncul dlm masa 5 tahun ni, 2014?

StellarEagle

Sedih2. ... People Centric? Bnyk loopholes kerajaan kena tgk untuk perbaiki delivery sektor2 lain.

Ini asal nak tambah kan peruntukkan kat tempat lain, PERTAHANAN kena bantai dulu...

Its avoidable. Kalau nak cut pun 20% dah memadai.... Malaysiaku.

Saya blame part of it because of rakyat malaysia sekali (Bukan semua) yang rata rata ignorant atau unpatriotic atau kedua2.

On a side note, Negara lain in this region increasing def budget despite the economic crisis...well at least for now.