KUALA LUMPUR, Aug 19 — The need for higher defence spending was driven not only by regional dynamics but also by emerging threats, said Defence Minister Datuk Seri Mohamed Khaled Nordin.

He said several developments had changed the government’s approach to defence policy and expenditure, including emerging challenges such as cyber and electromagnetic threats, as well as mass misinformation campaigns.

He noted that within the regional security landscape, these issues had to be viewed in the broader context of growing geopolitical uncertainty and a shifting security environment.

“It is not that Malaysia suddenly sees any particular country as a threat, but there is clearly an increase in military activity and presence in the region, particularly as strategic competition between the major powers intensifies.

“When one side increases its presence or capabilities, it is natural that others may respond accordingly. This creates a more complex security environment for countries like Malaysia,” he said in a statement today.

Yesterday, Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, said Malaysia needed additional defence spending, potentially ranging from hundreds of millions to billions of ringgit, to ensure it had sufficient assets and capabilities to address an increasingly complex security environment.

Mohamed Khaled said the possibility of miscalculations, misunderstandings or small incidents escalating into something more serious naturally increased when more military assets operated within a relatively confined geographical space.

Regarding developments in the southern Philippines, including areas close to Sabah, Mohamed Khaled said even if an incident did not directly involve Malaysia, any escalation in the area could have had wider implications for national security and stability in the South China Sea.

At the same time, he said Malaysia respected the Philippines’ right to determine its own defence arrangements and partnerships based on its security requirements.

“Those are bilateral decisions for the countries concerned. Malaysia maintains good relations with the Philippines, and it is important that we continue to have open lines of communication to manage any potential misunderstanding,” he said.

Mohamed Khaled stressed that the government did not want regional developments to be framed as Malaysia choosing sides, as the primary concern was to maintain regional stability and ensure strategic competition between major powers did not create unintended consequences for Asean countries.

He said Malaysia would continue to strengthen its own defence preparedness, which was not directed against the Philippines, the United States, China or any other nation.

The modernisation of the Malaysian Armed Forces, he added, had long been part of national defence planning, and the intention to gradually increase defence spending to 1.5 per cent of Gross Domestic Product (GDP) by 2030 should have been understood in that context.

“We are also strengthening capabilities in areas that are strategically important to Malaysia, including Pulau Layang-Layang. Again, this is about national defence and national interest, rather than responding to or targeting any particular country,” he said.

Mohamed Khaled said the government’s approach followed two tracks — maintaining sufficient capabilities to protect sovereignty and national interests, while simultaneously advocating for stability, dialogue, and diplomacy.

On the South China Sea, he said that all parties had to continue to exercise restraint and avoid actions that could lead to escalation, adding that progress on the Code of Conduct was vital for a predictable environment.

“Malaysia will continue to support Asean centrality and the Asean approach of providing space for dialogue, even where there are differences and overlapping claims. We want the region to remain stable, open and peaceful. That remains our priority,” he said. — Bernama