Tighter watch on defence spending


KUALA LUMPUR: All military and security procurements will face tighter scrutiny under the new National Defence Industry Policy (DIPN), says Datuk Seri Anwar Ibrahim.

The Prime Minister said the freeze he announced earlier on all procurements by the Home and Defence ministries was still in place and would be evaluated within the DIPN framework now.

“All procurement must be assessed transparently and structured to prevent any possibility of abuse or wrongdoing,” he said during the launch of DIPN here yesterday.

The policy unveiled by Anwar marks a new step in strengthening the country’s security, restoring confidence in the defence sector, and developing a more credible, integrity-driven local defence industry.

Anwar, who is also Finance Minister, said the Finance Ministry will play a key role in ensuring controls and compliance under the new framework.

“Last week, I announced a freeze on all procurements by the Home and Defence ministries. 

“I also instructed (Defence Minister) Datuk Seri Mohamed Khaled Nordin to review all procurements that have been approved but not yet finalised, personally overseeing the process and liaising with the Finance Ministry,” he said.

The Prime Minister said no one should interfere in the process now. 

“Every proposal must go through a transparent process and be made accountable to both the minister and the secretary-general before submission,” said Anwar.

While the Defence Ministry retains responsibility for determining the type of weapons and equipment required, Anwar said all acquisitions will undergo strict screening.

“I am confident this can be achieved with the new Armed Forces leadership and the Defence Minister, and I will provide full support,” he added.

“The entire Cabinet is united in restoring and strengthening capabilities while implementing the DIPN,” the Prime Minister concluded.

Anwar said DIPN is driven by four main pillars, which include strengthening governance and institutions, developing technological capabilities, enhancing the local defence ecosystem and supply chain, and improving global competitiveness and exports.

“Our focus begins with strengthening governance and institutions, which I have always emphasised,” he said.

He said the second pillar focuses on developing technological capabilities, including through the implementation of the Industry Collaboration Programme (ICP).

The third pillar involves enhancing the local defence ecosystem and supply chain, which requires building technological self-reliance and providing continuous support for the domestic industry.

“An ecosystem requires us to not only procure but also develop local technological self-reliance, strengthen local supply chains, and commercialise research and development,” he said.

The Prime Minister said the fourth pillar is boosting global competitiveness and exports, with Malaysia aiming to start exporting defence industry products.

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