Trimmer budget for Mindef ahead due to lower crude oil prices: Tok Mat

KUALA LUMPUR – The Defence Ministry (Mindef) is expecting a leaner budget for 2023 for all three of its main service branches as the country deals with economic challenges while facing reduced revenue from lower crude oil prices.

Its minister, Datuk Seri Mohamad Hasan, said Mindef officials have sent a recalibrated budget to the Finance Ministry for vetting and expressed hope that all items on their proposed wishlist will be approved.

“The unity government has conducted a budget recalibration after taking into account lower revenue from the sale of crude oil, which has dropped from US$110 (RM470.08) per barrel to US$80.

“So from there, the budget will be allocated to the respective ministries based on priorities.

“For Mindef, we have conducted our own budget recalibration and even asked for increased allocation in certain areas, so we hope that the government will consider our request,” Mohamad said during a site visit to the Residensi Sateria armed forces housing project here today.

The 2023 budget for Mindef under Prime Minister Datuk Seri Ismail Sabri Yaakob’s administration last year was RM17.4 billion.

Recently, Mindef, in a press statement, had also announced that they were axeing five procurement projects involving supplies, services and infrastructure to mitigate further leakages in public funds.

Instead, procurement will be done through open tender for all three branches of its services – the army, navy and air force – in line with the government’s policy on transparency and value for money.

Meanwhile, Mohamad also assured servicemen that the ministry will continue its efforts to improve the welfare of armed forces personnel as stated in the defence white paper.

This includes providing proper housing and infrastructure for servicemen.

For context, the Setaria Residence is part of these initiatives to provide 3,500 units of housing in five blocks of high-rise apartments. Each unit is to be sold at a subsidised rate for servicemen.

The 5.26ha project in Sg Besi faced some delays due to Covid-19 lockdowns, and is currently 21.69% complete, with full completion expected to be done by late-2024, said Mohamad. – The Vibes, January 25, 2023