KUALA LUMPUR: The 2025 Budget's initiative to empower the local defence industry through technology transfers from military asset suppliers and encourage exports is a timely step toward ensuring self-reliance for the nation's armed forces, say defence experts.
Dr Mohd Ramlan Mohd Arshad of Universiti Teknologi Mara's Administrative Science and Policy Studies Faculty said this move was crucial for managing costs associated with acquiring assets from foreign firms.
"Transitioning from purchasing to self-development is essential to avoid high prices from producers in countries like Russia, Ukraine, Poland, and the USA, from whom we typically buy.
"The main issue is our ongoing reliance on imported defence assets and systems. Prioritising self-reliance is vital. For example, despite sanctions, Iran has managed to develop its own defence capabilities, including a nuclear weapons system," he said.
Ramlan suggested that there should be a new programme similar to the Special Armed Forces Programme (Perista) from the 1970s to modernise the armed forces.
"We have local companies developing rifles and ammunition, such as Deftech, Airod, SMEO, BHIC, and ATSC.
"From 1970 to 1984, the Perista programme aimed to acquire, rather than develop, defence assets. This history shows that Malaysia has made progress in developing a defence system under a self-reliance framework. However, since then, our focus has shifted back to purchasing rather than developing," he said.
The 2025 Budget allocates RM21.2 billion to the Defence Ministry, reflecting an RM1.4 billion increase, aimed at ensuring the full readiness of the Malaysian Armed Forces.
Of this amount, RM5.8 billion is dedicated to maintenance, repairs, and the procurement of new military assets.
However, Ramlan argued that the defence budget should be increased to align with neighbouring countries.
"The ideal budget for defence should be around RM29 billion to RM32 billion, with a focus on maritime assets. Our navy needs a boost to match our Thai and Singaporean counterparts. A three-layer maritime defence strategy is necessary, involving the coast, the Malaysian Maritime Enforcement Agency, and the navy," he said.
Meanwhile, Dr Aizat Khairi from the Universiti Kebangsaan Malaysia Research Centre for History, Politics, and International Affairs said that this would be the opportune moment for the government to fully support local manufacturing to enhance defence assets.
He said it was important to trust local talent in research and development due to their potential.
"However, the government should consider allocating a special budget for defence to empower artificial intelligence capabilities. As the threat of cyber warfare becomes increasingly evident, Malaysia needs to remain vigilant," he added.