Thomas Daniel was quoted in South China Morning Post, 1 November 2024

Malaysia has less clout to deal with disputes with other nations due to its failure to modernise its naval fleet, an analyst says

By Joseph Sipalan

Malaysia’s navy and its overall defence assets have come under renewed scrutiny after investigators said a 45-year-old vessel sank during a patrol partly due to its age, prompting questions over the capacity of its fleet to defend the country and its territorial claims in the contested South China Sea.

Fast attack vessel KD Pendekar sank in August after a navigational error put it on a collision course with a reef while it was out on a routine patrol off the southern Johor state, according to the results of a navy inquiry.

The weakness of the ageing vessel’s hull accelerated the spread of flooding to other compartments, the navy’s statement on October 28 said. All 39 crew members were rescued by a passing merchant ship, but one navy diver died during an operation to recover the vessel.

“Malaysia was once considered a regional leader in defence capabilities, often standing ahead of many Asean counterparts,” said Ramli Dollah, a defence expert from the Universiti Malaysia Sabah (UMS), referring to the Association of Southeast Asian Nations. “However, it is now perceived as lagging behind other countries in the region.”

Defence Minister Mohamed Khaled Nordin in October told parliament that a total of 171 military assets had been in service for over 30 years now, including most of the navy’s fleet and helicopters commissioned in the 1960s.

The government’s auditor-general released a report in July that found that half of the navy’s 49 ships were operating well beyond their serviceable lifespan.

The report also uncovered about 384.5 million ringgit (US$89.4 million) in losses from more than 1.62 million spare parts that were no longer compatible with the navy’s existing fleet.

Malaysia’s failure to modernise its fleet to meet current and future challenges has left the country with significantly less clout when planning responses to disputes with other nations, according to Thomas Daniel, a senior fellow at the Institute of Strategic and International Studies Malaysia.

“For a non-aligned country like Malaysia, with no defence treaty partners to fall back on, we need carrots and sticks,” Thomas told This Week in Asia. “Not having a credible level of minimal deterrence reduces our options and ability to protect our interests.”

Naval deterrence is crucial for Malaysia and other Asean countries including Brunei, the Philippines and Vietnam to assert their territorial claims against China, which claims nearly the entire South China Sea under its 10-dash-line.

Malaysia will assume Asean chairmanship next year, during which it is expected to finalise a code of conduct in the disputed waterways between China and the bloc.

Shortage in funding has been a perennial issue for Malaysia’s military. The government set aside 21.2 billion ringgit (US$4.9 billion) for the defence sector under its 2025 budget, around an 8 per cent increase from the previous year.

The country’s defence ministry plans to acquire nine new vessels, including one multipurpose mission ship and two new-generation patrol boats.

But procurement of new naval assets will be limited due to funding allocated for maintenance and repair costs, all of which will be financed to the tune of 5.8 billion ringgit under the defence budget.

“With the various threats facing Malaysia, this allocation is not enough for what is needed for deterrence and effective modernisation,” Ramli of UMS said.

The navy is not the only service arm in the country struggling for cash.

The Malaysian air force has for years been facing a shortage in funding to buy new assets for its modernisation. Notably in 2017, the government shelved its US$2 billion plan to replace a fleet of Russian-made MiG-29 twin-engine fighter jets – most of which were grounded – due to the lack of funds to acquire costly replacements.

Nonetheless, Malaysia last year signed a US$920 million deal to acquire 18 FA-50 light attack jets to be built and delivered by Korea Aerospace Industries from 2026.

In comparison, neighbouring Singapore expects to spend S$20.2 billion (US$15.3 billion) for its defence in its 2024/2025 financial year, with its air force expected to grow its fleet of US-made F-35 stealth fighter jets to 20.

Malaysia’s 18 new FA-50 planes will replace the air force’s ageing fleet of Hawk trainer and light combat aircraft, which have been in service since 1996 but have been plagued by safety issues.

A 2021 crash during a night flight training run involving a Hawk plane at the Butterworth air force base in Penang killed one pilot and injured another. In 2017, two pilots were found dead in a forested area in Terengganu with their parachutes unfurled in a swamp after ejecting from their Hawk plane before it crashed.

Beyond military deterrence, Malaysia also needs more advanced defence assets to deal with cross-border crimes such as kidnap-for-ransom, smuggling and irregular migrant flows, experts say.

“This multifaceted threat landscape requires Malaysia to diversify and reinforce its military capabilities, as each type of threat demands a distinct response and specialised assets,” Ramli said.

This article first published in South China Morning Post, 1 November 2024

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