Military modernisation to boost Malaysia’s defense spending: report
The country is modernising its defense system amidst sovereignty and security threats.
Military modernisation in Malaysia will drive its defense budget to growth at a compound annual rate of 8.4% to reach $6.2b in 2028, GlobalData reported.
The country is modernising its defense system amidst persisting sovereignty and security threats, such as piracy and terrorism.
“Malaysia has been proactively addressing improvement areas in its air and naval capabilities by formulating plans to modernize its legacy military platforms in recent years. While military spending hasn't traditionally held a top spot in the government’s priorities, resulting in delays and cancellations of military modernization initiatives owing to economic constraints, there is a promising development in the 2023 defense budget,” Rouble, Aerospace & defense Analyst at GlobalData, said.
“Malaysia's integrated, agile, and focused approach highlighted in its defense budget is expected to enable it to build a technologically advanced armed force that can respond to modern and evolving threats.”
GlobalData found that Malaysia's defense spending increased to $4b in 2023 from $3.7b in 2022, reflecting a significant annual growth rate of 10.3%.
The increase in the defense budget is expected to fast-track military modernization efforts, which may see the fruition and scale-up of many planned procurement programs. It will also support disaster response capabilities and international commitments whilst contributing to the country's economic interests.
