PORT DICKSON: Malaysia reduced the cost of procuring its Littoral Mission Ships (LMS) by 15% through direct government-to-government (G2G) negotiations with Turkiye, says Datuk Seri Anwar Ibrahim.
The Prime Minister said he had raised the proposal with Turkiye president Recep Tayyip Erdogan during their conversation.
“I asked that if we would like to buy ships, could we have direct G2G negotiations, as this would reduce the price since there is no need to pay commissions to agents.
“Can we negotiate and get the Armed Forces to discuss the requirements, while officials from the Finance Ministry assess the costs.
“To this, Erdogan replied that it was a very good proposition and we have since cut costs by about 15%,” Anwar said in his speech at the national patriotism programme at the Army Basic Training Centre (Pusasda) here on Friday (July 24).
Anwar also said that the budget for the Defence Ministry rose by 35% under Budget 2026 when compared to Budget 2022 tabled under the previous administration.
He said RM21.7bil was allocated for the ministry, higher than the RM16.1bil allocated under Budget 2022.
“That is a 35% increase. Other ministries may see raises ranging between two to four percent.
“For the Defence Ministry, this is to support efforts in safeguarding the country. The 35% increase is also the highest recorded,” said Anwar, who is also Finance Minister.
Anwar also said the ministry and army personnel were never sidelined.
The Prime Minister added that he has never interfered in any procurement matters, also instructing Cabinet members of this.
“Defence is not my expertise. I am only the Prime Minister and Finance Minister, just recommend what is needed,” he said.
Although he had received briefings on this, Anwar acknowledged his limitations.
“You know more about these assets than I do. We may discuss the pricings but there must be no interference,” he said.
The Prime Minister also expressed gratitude to the Armed Forces for their service in safeguarding the country.
“We must never forget the contributions of those who sacrificed themselves for the country.
“Our economy may be growing, but the reason why all of this is possible is due to the contributions of our forces, including the army,” he said.
