The government is purchasing an air defence system, equipped to shoot down aircrafts, worth RM1.2 billion from a British company, the Dewan Rakyat was told today.

Deputy Defence Minister Mohd Shafie Haji Apdal said a contract was signed with MBDA (UK) Ltd on April 10 this year to procure the Jernas system, which included missile launchers, radars, training and support.

The purchase is expected to be completed by 2005.

Mohd Shafie was replying to Husam Musa (PAS-Kubang Kerian) during the question-and-answer session.

Husam had asked if the government was intending to purchase the Jernas air defence system and Oerlikon anti-aircraft cannons.

To Husam's question on the Oerlikon cannons, Mohd Shafie said 29 were purchased in stages from 1988 to 1999 at the price of RM668 million from the Oerlikon Contraves Switzerland Company.

RM12.7 billion

This latest arms deal is part of the government's plan to modernise the country's armed forces, which was derailed due to the 1997 Asian financial crisis.

Since the beginning of this year, the country has spent a total of RM12.7 billion on defence equipment.

Among the purchases were assault rifles worth RM305 million, 18 F/A-8F fighter jets worth RM5.7 billion, three submarines worth RM3.7 billion, and 64 tanks and armoured vehicles from RM950 million to RM1.14 billion.

A deal to buy Russian Sukhoi SU-30 fighter jets is still under consideration.

Saudi-reject weapon

In a supplementary question, Husam queried the ministry the reason for the purchase of the Jernas defence system when Saudi Arabia had rejected it for not fulfilling certain specifications.

The deputy minister replied that many countries bought defence equipment which were rejected by certain countries.

Shafie said both the air defence system satisfied the ministry's requirements and was suitable for the country's use.

Malaysia is the first export customer for Jernas.

Jernas is the export name for the Rapier FSC (Field Standard C) air defence system developed by MBDA, which specialises in missile systems.

This particular system provides defence against unmanned aerial vehicles, cruise missiles as well as aircrafts.