The current political climate and government austerity measures in Malaysia mean that a number of programs for the Malaysian armed forces look likely to be postponed until the time frame of the 11th Malaysia Plan, which covers government spending for the period of 2016-2020. A combination of public dissatisfaction over the cutting of government subsidies and the government’s need to balance an increasing deficit has made spending on military procurement politically unviable at the moment.
All three services of the Malaysian armed forces have received significant cuts to their procurement budget requests for 2012. The political context for this is the build up to a general election, which must be held by 2013. With defense spending being a contentious issue in Malaysia and the need to reduce state spending, the current government has opted for sizable cutbacks.