Malaysia’s Prime Minister Anwar Ibrahim at the 2027 Budget Engagement Council. Official handout.
Manuel Mogato | August 20, 2026
KUALA LUMPUR — Malaysian Prime Minister Anwar Ibrahim has asked parliament to increase defense spending to build military bases in the eastern state of Sabah, concerned about US military expansion in the Philippines.
“Our basic defence capabilities must be strengthened,” Anwar, who is also the finance minister, said during a 2027 budget session.
Anwar has noted that the government increased defense spending in the last two to three years due to changes in the regional security environment.
“This is no longer an ordinary region,” he said. “It is increasingly becoming a focal point of tensions between two major powers, the United States and China,”
Anwar said there is a need to increase deterrence as the regional security situation has evolved, directly impacting Malaysia’s security. (Also read: Malaysia seeks $250 million damages from Norwegian supplier for revoked missile deal)
He pointed to the United States’ expansion in the region, including its development of air and naval bases on Balabac Island in the southern Philippines. The military bases were developed with the Philippines.
Balabac on the southern tip of western Palawan Island is less than 30 minutes from Sabah, a territory claimed by the Philippines. (Also read: What’s the reason behind US expansion of military engagements in the Philippines?)
“As a close neighbor, and given the issue of the claim over Sabah, naturally we are somewhat concerned, although our bilateral relations with the Philippines are very good,” he said.
Anwar said Malaysia lacks the capacity to develop air and naval bases in Sabah. “Our basic defense capabilities must be strengthened,” he added.
