FACULTY OF DEFENSE STUDIES AND MANAGEMENT

NATIONAL DEFENCE UNIVERSITY OF MALAYSIA

SUNGAI BESI CAMP
BACHELOR OF DEFENSE AND SAFETY MANAGEMENT

INDIVIDUAL TASK: MALAYSIA’S BUDGET FOR 2022 (DEFENCE

BUDGET)

PREPARED BY: NALYSSA SYAZWANI BINTI NAZLE

NO MATRIC: 2200980
LECTURER: LT COL DR. S. ANANTHAN (RETIRED)
COURSE: DEFENCE MANAGEMENT
COURSE CODE: DMM 3463
GROUP: 2ZP58A
DUE DATE: 8 NOVEMBER 2021

Malaysian Budget 2022 For Defence and Security

The public authority has expanded the portion for protection and security in the 2022 Budget.
Malaysia's government has requested a defence budget of MYR16.14 billion for 2022.
(USD3.9 billion). The amount reflects a 1.8 percent increase above the initial allocation of
MYR15.86 billion in 2021. With the net, percentage of budgeting defence is 4.8%
Malaysia's gross domestic product (GDP) is likewise expected to rise between 5% and 6% in
2022, reaching a total value of RM1.474 trillion. Additionally, the ministry released its
prediction for the government's current account surplus in 2022 at RM55.6 billion, or 3.5% of
gross national revenue. The data contained indicated that the current account surplus will
reach RM60 billion in 2020 and RM56.6 billion this year.
When asked about the major challenges in developing Budget 2022, Tengku Zafrul stated
that it was creating a budget that could meet the requirements of diverse parties, particularly
given the government's extensive spending to assist individuals and businesses in overcoming
difficult circumstances over the last year.
The defence budget for 2022 was tabled in parliament on October 29. The allocation, which
represents 5% of total national government spending for the year, is comprised of MYR11.10
billion in running expenses and MYR5.04 billion in development expenses. These figures
represent a 2% year-on-year drop and a 12% year-on-year increase, respectively.
Additionally, Senior Defence Minister Datuk Seri Hishammuddin Hussien stated that the sum
specified in the 2022 Budget was the most since the Ninth Malaysia Plan (9MP).
According to recently revealed budget statistics from the Ministry of Finance (MoF), around
71% of operational costs were spent on wages, with the remainder allocated to services and
supplies. The development expenditure comprises MYR497 million for services and supplies,
a drop of 76% but an increase of 87 percent in assets to MYR4.54 billion. The Royal
Malaysian Air Force (RMAF) will get 34% of the development budget, while the Royal
Malaysian Army and Royal Malaysian Navy will each receive 26% and 23%.
The services and high-value items that Mindef intends to purchase this year as part of the
Defence Ministry's RM16 billion budget will be used entirely for the benefit of the country's
defence industry and to further Keluarga Malaysia's objectives, particularly for Malaysian
armed forces personnel, veterans, and civilian workers.
Additionally, RM1.6 billion has been set aside to improve the readiness of the armed forces'
primary assets, and RM14 million has been set aside to replace the primary equipment of
Paskal (Royal Malaysian Navy special forces) and Paskau (Royal Malaysian Air Force
special forces), including parachutes, underwater breathing gear, and boats.
"The government will also construct four new immigration gates, two of which will be
located in Sarawak's Telok Melano and Baleh," he said.
Datuk Seri Hishammuddin Hussien, Senior Defence Minister, stated that the Immigration
gateway was created to meet the growing demand for travel following the move of the
Indonesian capital to Kalimantan and the inauguration of the Pan Borneo Highway via Telok
Melano.
To summarise, the Ministry of Defence (MINDEF) has decided to augment the Malaysian
Armed Forces (ATM) through the allocation received from the public authority by:
a) Improving ATM capabilities in terms of resources and weapons, which is an important
aspect in ATM preparedness;
b) Strengthen the affiliation of ATMs in various activities to defend the nation's interests as
well as the power and regional trustworthiness;
c) Ensuring the prosperity and government help of military personnel, including ATM
Veterans;
d) Strengthen key organisations and discretionary relationships, notably within ASEAN
countries and beyond.
The increase in allotments indicates the government's strong commitment to meeting public
safety demands. Unpredictable security conditions and unusual security threats are two main
considerations that necessitate an enhanced degree of ATM status – MINDEF site.