Stop relying on agents for defence procurements, says Anwar
He said that since 2022, the government had decided that procurement must follow a more transparent process, either through open tenders or, in some cases, direct G2G arrangements, to reduce the burden of excessive commissions by multiple agents.
He said this approach had proven effective, citing the G2G arrangement with Turkiye, where costs were reduced significantly by eliminating excessive agent commissions.
"We must end the over-reliance on agents and, wherever possible, opt for G2G arrangements, carefully negotiating and verifying costs, without mixing in political considerations or (the interests) of certain individuals.
"On negotiations with Italy, I spoke with the Italian Prime Minister to accelerate a G2G arrangement. Under such agreements, both governments are responsible and costs are much lower," Anwar told the Dewan Rakyat today.
He was responding to Ahmad Fadhli Shaari (PN–Pasir Mas) on Malaysia's defence readiness in the face of global and regional geopolitical uncertainties.
Anwar, who is also the Finance Minister said allocations for the Defence Ministry had increased from RM3 billion in 2020 to RM5 billion in 2024, particularly for development and procurement.
"Although tens of billions of ringgit have been spent, local capability remains limited.
"That is why we have increased allocations for local preparations, including in Lumut, as well as procurement of fast interceptor craft for the Royal Malaysian Navy, which plays a strong role," he added.
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