Malaysia

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

Recalibration includes request for higher allocation in certain areas, says minister

Updated 3 years ago · Published on 25 Jan 2023 11:34AM

Trimmer budget for Mindef ahead due to lower crude oil prices: Tok Mat
Datuk Seri Mohamad Hasan has 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.– ABDUL RAZAK LATIF/The Vibes file pic, January 25, 2023

by Danial Dzulkifly

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

Related News

Malaysia / 6d

Ministries must spend according to set budgets - KSN

Malaysia / 1mth

Deputy Exco plan puts Negeri Sembilan government under pressure to justify need, cost

Malaysia / 1mth

PRN Negeri Sembilan: The battlegrounds, big names and three-cornered fights to watch

Malaysia / 1mth

PRN Negeri Sembilan: Four seats in focus, battle expected to be tougher than Johor

Malaysia / 1mth

Malaysia must aim to return to budget surpluses again

Malaysia / 3mth

Malaysia’s missile deal collapse exposes hidden risks in global arms trade

Spotlight

Opinion

“I’m not a war criminal, I’m a patriot”: Shavendra Silva’s amnesia tour meets the receipts

By Abbi Kanthasamy

Malaysia

British management on trial – does a royal management institute deliver value?

Malaysia

Doctor among five killed in Sarawak Flying Doctor helicopter crash identified

Malaysia

Nearly 10,000 potential fire hotspots detected on RSPO-managed land

Malaysia

Undang Yang Empat produces letter allegedly confirming Tuanku Muhriz’s removal

Malaysia

Northern Malaysia must prepare for the consequences of lower rainfall

Malaysia

Helicopter crashes during flying doctor service mission in Sarawak

You may be interested

Malaysia

Abdul Azeez, two former TH executives remanded 2 days over alleged hibah fraud

Malaysia

The potential for a redevelopment of Port Dickson

Malaysia

Clearer timelines and updates on investigations needed, says maritime expert

Malaysia

Court rejects zoom route, gives prosecution more time to serve Yusoff Rawther

Malaysia

Forensic psychiatrist says positive aspects of Zara Qairina’s diary were considered

Malaysia

Bathroom peeping allegation uncovers four-year-old molestation claim against stepfather

Malaysia

Abdul Azeez claims trial over RM193.5m Tabung Haji investment

Malaysia

RM2.41b drug seizure uncovers massive Puncak Alam lab