Malaysia allocates USD5.4 billion for defence in 2027

Janes forecasts Malaysia's defence budget to exceed USD5.6 billion by 2030. (Janes Defence Budgets)

Malaysia has allocated MYR22.1 billion (USD5.4 billion) for defence in 2027, representing a 1.6% nominal increase from the previous year.

Malaysia's Ministry of Defence (MINDEF) announced on 9 October that the new defence budget comprises MYR14.52 billion in operating expenditure and MYR7.58 billion in development expenditure.

MINDEF outlined five focus areas to ensure that the 2027 defence budget is “managed transparently, prudently, and effectively”, state-owned news agency Bernama reported on 10 October. These areas include defence readiness and capabilities; the welfare of military personnel and Malaysian Armed Forces veterans; human capital development; and research and defence (R&D) industry.

Under the new budget, MYR7.1 billion has been allocated to procure and maintain assets for the uniformed services, including the armed forces.

MINDEF noted that MYR5.34 billion has been allocated to develop equipment for the Malaysian Armed Forces, while MYR133.45 million has been set aside for operations in the Eastern Sabah Security Zone.

About MYR65 million has been allocated to defence R&D under the new budget to strengthen Malaysia's defence industry, Bernama reported. This includes MYR1.2 million allocated to the Science and Technology Research Institute for Defence (STRIDE) operating under MINDEF.

According to the budget documents, STRIDE will focus on human performance and chemical, biological, radiological, nuclear, and explosive (CBRNE) capabilities, while improving threat detection and response to enhance national defence preparedness.

MINDEF also allocated funding for military housing, equipment, veteran support, and higher minimum pensions. This includes MYR957 million for housing and about MYR300 million in operational funding for the Department of Veterans Affairs (JHEV).