How to measure value from defence spending? The Malaysian case study

Abstract

ABSTRACT Nations and their citizens now demand clear evidence as to the benefits of defence spending. The opportunity cost of defence expenditure against other sectors is constantly queried. It is economically challenging to find consensus amongst traditional economists, and policy-makers, on how to measure value in the context of defence. This article offers solutions by using the case study of Malaysia. Primary data sources include open-ended and semi structured interviews to produce a thematic discussion, as well as secondary resources. The author argues that it is hard to appraise defence value, as measurements are case-specific. Rather, the paper will use a novel ‘Triple-Defence Value Framework’, to argue that value can be measured by dividing the role of defence into a primary level: for protection and safety; a secondary level: for socio-economic prosperity; and a tertiary level: for soft power projection. The paper concludes by using the framework to measure the value derived from the Malaysian defence sector.