PUTRAJAYA April 30, 2026 – Defence Minister Dato’ Seri Mohamed Khaled Nordin has given his assurance that the planned reduction in the Ministry of Defence’s operating expenditure will not significantly impact the country’s defence readiness and capabilities.
In a statement to the New Straits Times, Khaled said the ministry will reprioritise its spending to ensure operational effectiveness remains intact.
“We will make sure the cut does not significantly affect our readiness and capabilities. We will rearrange our priorities,” he said.
“In general, we fully understand why the measures are taken and believe that all have to share and make sacrifices. Every ministry needs to chip in,” he added.
The assurance comes after the Finance Ministry proposed a RM5.4 billion cut in operating expenditure across all government sectors as part of a larger plan to achieve RM10 billion in savings this year. The move is in preparation for Budget 2026 and is linked to the need to strengthen Malaysia’s fiscal position amid global uncertainties.
Treasury guidelines cited rising geopolitical tensions in the Middle East, ongoing conflicts, and disruptions to key shipping routes such as the Strait of Hormuz — which handles about 20 per cent of global oil flows — as factors contributing to higher crude oil prices and supply chain issues.
The Defence Ministry is expected to see a reduction of RM508 million in its operating expenditure. All ministries and agencies have been directed to reprioritise spending and submit their savings proposals to the National Budget Office by May 15.
For 2026, the Defence Ministry and the Malaysian Armed Forces have been allocated a total of RM21.74 billion — a modest 2.92 per cent increase from RM21.13 billion the previous year.
Of the total allocation, RM14.11 billion is earmarked for operating expenditure and RM7.63 billion for development expenditure.
Khaled’s comments were also shared on his official X account earlier today, linking directly to the NST report.
The minister’s assurance is expected to ease concerns among defence observers regarding the impact of the government-wide austerity measures on national security.
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