Hishammuddin: Defence Ministry to launch plan for military spending that boosts economy

·2-min read
Malay Mail
Malay Mail

KUALA LUMPUR, Sept 29 — The Defence Ministry will launch a policy on the country’s military industry to ensure spending in this area would also benefit the Malaysian economy, Senior Minister Datuk Seri Hishammuddin Hussein said.

He said this policy will also provide further justification for the ministry’s requests for budget allocations.

“The argument is that we do not bring returns to the country’s economy, (that) the amount allocated to MinDef is large but it does not help to improve the performance of our country’s economy.

“That is why I have made a decision that we will soon launch a defence industry policy and, under this new policy, we want to boost our defence industrial sector, and we will prove that the returns to our country is not only in terms of security and defence, but it will help strengthen our country’s economy,” he told reporters today at the Wisma Mindef here.

Hishammuddin was responding to questions about his ministry’s requests for Budget 2023.

The senior minister said that while he understood the government’s limitations due to the current global economic crisis, he still hoped the Finance Ministry (MoF) would recognise the intangible importance of defence spending.

“So, we need to be creative in bringing forward our suggestions, and I have brought the suggestions to MoF,” he said

Hishammuddin said these proposals had been well-received during his ministry’s engagements with the MoF.

In Budget 2022, the Defence Ministry was allocated RM16.1 billion.

Among others, the RM16.1 billion was allocated to enhance the preparedness of the main assets of the armed forces, to replace the main equipment of Paskal (Royal Malaysian Navy special forces) and Paskau (Royal Malaysia Air Force special forces), including parachutes, underwater breathing gear and boats.