The missile development programme was prompted by the recent wars in Afghanistan and Iraq, Shafie was quoted as saying by the official Bernama news agency.

The government was studying the possibility of collaborating with countries with missile technology, he said.

"Among the countries we are looking at are Bosnia and Brazil because they have quality missile manufacturing technology."

Malaysia has embarked on a major arms procurement spree that included a decision recently 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, ordered British and Russian missile systems worth 364 million dollars and 48 attack tanks from Poland.

Malaysia has denied that it is engaged in a regional arms race, saying its aging military hardware needed to be upgraded for self-defence.

WAR.WIRE