Kuala lumpur: Malaysia needs additional defence spending, potentially ranging from hundreds of millions to billions of ringgit, to ensure it has sufficient assets and capabilities to address an increasingly complex security environment, Prime Minister Datuk Seri Anwar Ibrahim said. According to BERNAMA News Agency, Anwar, who is also Finance Minister, stated that the need should be viewed against shifting regional geopolitics, increasingly shaped by tensions between the United States and China. He emphasized the importance of open discussion as Malaysia assesses its security needs, particularly in strengthening its defences in Sabah. The government has increased defence allocations over the past two to three years in response to changes in the regional security environment. "This is no longer an ordinary region. It is increasingly becoming a focal point of tensions between two major powers, the United States and China," Anwar remarked at the closing of the Budget 2027 engagement session. Anwar highlighted the significance of maintaining good relations with both China and the US to safeguard Malaysia's national interests amid geopolitical developments. He also pointed to security developments in the southern Philippines, noting the proximity of Balabac Island to Malaysia's Banggi Island, and its development as a major military base with US involvement. "Naturally, we are somewhat concerned, although our bilateral relations with the Philippines are very good," he said, acknowledging the issue of the claim over Sabah. Anwar stressed the need to strengthen Sabah's defence capabilities, even though Malaysia lacks the resources to match the military and air bases in Balabac. The Prime Minister asserted that Malaysia must enhance its defences in line with the changing regional security landscape, focusing on developments with direct implications for the country. The Budget 2027 engagement session was attended by key government and financial figures, industry representatives, and other stakeholders. Budget 2027 is scheduled to be tabled in Parliament on October 9.