The purchases are part of Malaysia's military upgrading program, which has been revived after being derailed by the 1997/98 Asian financial crisis.

Defense Minister Najib Razak said the government planned to buy 17 Italian-made Aermacchi jet fighters and trainer aircraft from the New Zealand airforce.

The acquisition will allow it to train more combat pilots for its new fleet of jet fighters including the powerful Sukhoi and MiG-29 from Russia, he said.

"The project is being looked into by the finance ministry. We see an opportunity to acquire more trainers," he was quoted as saying by the Bernama news agency.

Airforce bases nationwide will be expanded and modernized to accommodate the larger fleet of jet fighters, he added.

New Zealand offered the aircraft to Malaysia after its parliament decided to downsize its air defense capability, Bernama said.

Malaysia's navy meanwhile, will take delivery of six Super Lynx from Britain costing 178.42 million dollars in August and six French-manufactured Fennec worth 172 million dollars by mid-2004.

Royal Malaysian Navy chief Mohamad Ramly Abu Bakar was quoted by the New Straits Times as saying that the new helicopters would boost radar capabilities and the use of the weapons system by its aviation wing.

"We are confident that the Super Lynx and Fennec helicopters will strengthen our aviation wing's capabilities," he said.

"At present, although we have missiles that can travel hundreds of kilometers (miles), our radar system has its limitations. However, with the new helicopters, we will be able to use their radar system to optimise the use of our weapons system."

The newspaper said the Super Lynx would have anti-ship weapons capabilities and carry six people for maritime operations, while the Fennec helicopter would be used for training.

Malaysia has embarked on a major arms procurement spree that included a decision last week to buy 18 powerful Sukhoi fighter jets from Russia in a deal estimated at 900 million dollars.

Last year it sealed a 1.23 billion-dollar pact to buy three French submarines to form its first fleet of subs, ordered British and Russian missile systems worth 364 million dollars and planned to buy more than 60 tanks from Poland.

WAR.WIRE