Chapter 7: Defence Funding A defence allocation based on the country’s financial capability is needed to ensure that the MAF continues to be able to meet any challenges against national interests. In order to achieve the desired effectiveness, decisions on defence allocation are made based on the following principles: Affordability The Government recognises defence as an important function of governance. Notwithstanding this the defence sector is capital-intensive and meeting its requirements depends on national funding ability. The principle of affordability is the basic consideration for deciding on the types of assets to be acquired and projects to be implemented. Allocation not based on GDP The allocation for the defence sector is not based on certain fixed percentages in the national budget but on priorities and national funding availability. In the interest of transparency all details of the defence sector allocation is debated in Parliament during the tabling of the Supply Bill. Both the Dewan Rakyat (Parliament) and the Dewan Negara (Senate) debate the defence allocation prior to its approval. MALAYSIA’S NATIONAL DEFENCE POLICY Page 31