The Malaysian government has announced that defence spending will increase by 5.3% under the 2018 budget. Total spending on the Ministry of Defence (MoD) will rise from MYR15.1 billion (USD3.6 billion) to MYR15.9 billion.
Spending will decline marginally against GDP, remaining at a level of around 1.1, and as a share of overall government spending from 5.8% to 5.6%. Despite that, the MoD’s budget allocation is still around 7% lower than in 2015 following a large cut to military spending in 2016.
The additional funding will be allocated within the recurrent budget which incorporates the operating costs of the MoD and the armed forces, with related spending rising by 7.6% from MYR11.7 billion to MYR12.6 billion.
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