Prime Minister Datuk Seri Anwar Ibrahim presented the highly anticipated 2025 Budget, which allocates a total of RM421 billion for national expenditures. Among the key recipients of the budget is the Ministry of Defence (MINDEF), which has been allocated RM21.2 billion for the coming year.
This significant allocation reflects the government’s intensified focus on bolstering national security, strengthening the Malaysian Armed Forces (ATM), and investing in the local defence industry. Additionally, the Ministry of Home Affairs (KDN) has been awarded RM19.5 billion, signaling the government’s commitment to enhancing domestic security and law enforcement.
Prime Minister Anwar Ibrahim, who also serves as Finance Minister, outlined that RM21.2 billion has been earmarked for the Ministry of Defence, with RM5.8 billion specifically allocated for the maintenance, repair, and acquisition of military assets. The increased funding marks a 7% rise from the previous year’s allocation, reflecting the government’s recognition of the strategic importance of Malaysia’s defence capabilities amidst an increasingly uncertain global geopolitical environment.
Defence Minister Datuk Seri Mohamed Khaled Nordin, in a statement on his official Facebook account, lauded the increase, emphasizing the importance of maintaining a robust defence posture. “This allocation reflects a seven percent increase from last year, positioning the Ministry of Defence among the top three ministries receiving the highest budget, alongside the Ministry of Education and the Ministry of Health,” he said.
The increased budget aims to address several key areas within the defence sector, from improving military readiness to investing in technological advancements, as Malaysia prepares to take on the role of ASEAN chairmanship in 2025. Khaled Nordin also highlighted that the allocation will cover the ministry’s special needs, particularly as it gears up for enhanced regional and international defence cooperation during Malaysia’s leadership in ASEAN.
The additional RM5.8 billion allocated to defence will target several strategic areas.
- Maintenance, Repair, and Acquisition of New Military Assets: With RM5.8 billion set aside for upgrading military hardware and infrastructure, the budget prioritizes the upkeep of critical defence equipment. This includes advanced weapons systems, aircraft, naval vessels, and ground vehicles. Ensuring that these assets are in prime operational condition is critical for maintaining the country’s readiness to respond to any security threats.
- Upkeep of Military Camp Schools and Internet Enhancement: Another key initiative is the allocation for the maintenance and modernization of educational facilities within military camps. In addition to ensuring that the children of military personnel receive quality education, the enhancement of internet access within these camps aims to keep military personnel connected and informed, enabling better communication and logistical coordination.
- Revitalization of the National Service Training Program (PLKN): RM50 million has been allocated for the pilot phase of the National Service Training Program (PLKN) under a new concept. This revamped program aims to instill patriotism, discipline, and leadership qualities in Malaysia’s youth while also providing military training. The reintroduction of PLKN is part of the government’s broader effort to strengthen national unity and prepare young Malaysians for future leadership roles.
- PROTÉGÉ – Veteran Program: In a move to support military veterans, the budget includes provisions for the PROTÉGÉ – Veteran Program. This initiative requires government contractors to provide employment opportunities to veterans, recognizing their service and facilitating their transition into civilian life. Additionally, the government will increase monthly living assistance for non-pensionable veterans from RM300 to RM500, acknowledging the financial challenges faced by these former service members.
- Pension Adjustments for Retirees: A gradual pension adjustment based on a percentage of retirees’ final salaries will be implemented, ensuring that military retirees receive adequate financial support in their post-service years. This adjustment is crucial for maintaining the welfare of former service members who have dedicated their lives to the nation’s security.
Chief of Defence Forces General Tan Sri Mohammad Ab Rahman expressed his strong support for the RM5.8 billion allocation for the acquisition and maintenance of strategic military assets. He emphasized that this allocation is critical to enhancing the operational capabilities of the Malaysian Armed Forces, particularly in light of the increasing uncertainties in global geopolitics.
“In light of global geopolitical uncertainties, prioritizing national defence is essential,” General Mohammad Ab Rahman told Bernama. “Moreover, the focus on developing the local defence industry in line with current innovation and technology is a welcome move.”
The general stressed that Malaysia’s defence strategy must evolve to keep pace with global advancements in military technology. By investing in new military assets, including cutting-edge hardware and advanced systems, Malaysia aims to ensure that its armed forces remain well-equipped to respond to both conventional and asymmetric threats.
In addition to the significant boost to defence spending, the 2025 Budget also allocates RM19.5 billion to the Ministry of Home Affairs (KDN), marking an increase of RM500 million compared to the previous year’s budget. This allocation underscores the government’s commitment to safeguarding Malaysia’s internal security and law enforcement capabilities.
Among the key highlights of the KDN budget is the RM2.12 billion set aside for specialized assets to support the Royal Malaysia Police (PDRM) and other uniformed agencies. These funds will be used to enhance the capabilities of law enforcement agencies tasked with combating rising crime rates and addressing threats to national unity and social cohesion.
Prime Minister Anwar Ibrahim emphasized the importance of domestic security, noting that the government is focused on ensuring the safety of all Malaysians through coordinated efforts between various law enforcement bodies. The rise in crime rates and the growing presence of divisive elements within the country have prompted the government to strengthen these agencies and provide them with the resources necessary to maintain law and order.
Recognizing the importance of maritime security in a region with extensive coastlines and maritime borders, the 2025 Budget also includes provisions for bolstering Malaysia’s maritime defence capabilities. Prime Minister Anwar announced that the government will acquire nine vessels for the Malaysian Maritime Enforcement Agency (MMEA), also known as Maritime Malaysia.
- Six Vessels Under the Phase 2 Ship Life Extension Program (SLEP): These vessels are part of the government’s ongoing effort to upgrade and extend the operational lifespan of Malaysia’s maritime assets. By enhancing the capability of its current fleet, the government aims to improve its ability to patrol and secure the country’s vast territorial waters.
- A Multi-Purpose Mission Ship (MPMS): This versatile vessel will be equipped to handle a range of maritime missions, including search and rescue, disaster relief, and humanitarian aid. The MPMS is expected to play a critical role in enhancing Malaysia’s ability to respond to emergencies both domestically and internationally.
- Two New Generation Patrol Vessels (NGPVs): These advanced patrol vessels will be equipped with state-of-the-art technology, allowing them to monitor and protect Malaysia’s maritime borders more effectively. The acquisition of these vessels is part of the government’s broader effort to safeguard the country’s maritime interests and secure its territorial waters against potential threats.
The 2025 Budget represents a carefully considered approach to addressing Malaysia’s most pressing defence and security needs. With a combined allocation of over RM40.7 billion for the Ministry of Defence and the Ministry of Home Affairs, the government has demonstrated its commitment to strengthening both national and domestic security.
From the acquisition of new military assets to the enhancement of law enforcement capabilities, the 2025 Budget lays the groundwork for a safer and more secure Malaysia. As the country prepares to assume the chairmanship of ASEAN in 2025, these investments will not only bolster Malaysia’s defence posture but also enhance its role as a key player in regional security and cooperation.
Prime Minister Anwar Ibrahim’s announcement of the 2025 Budget has been met with widespread support from key figures in the defence and security sectors. By prioritizing strategic investments in military and law enforcement capabilities, the government is positioning Malaysia to face the challenges of an increasingly complex global security landscape with confidence.
