The government has set aside an extra RM1.609 billion this year for arms purchases, including submarines, tanks and helicopters, said Defence Minister Najib Abdul Razak.

A large slice of the money - RM731.1 million - would go towards upgrading the Royal Malaysian Navy's power with Scorpene submarines, Fennec and Super Lynx helicopters and new patrol vessels, he told the official Bernama news agency yesterday.

Another RM523.6 million was for the army, which would acquire main battle tanks and air defence systems, Najib said.

Malaysia has already announced multi-billion ringgit deals to buy Russian fighter jets, French submarines, British and Russian missile systems and Polish attack tanks.

No arms race

The naval upgrade comes against the background of increasing concern over the possibility of terrorism in the Malacca Straits, one of the busiest shipping lanes in the world which funnels 50,000 vessels a year between the biggest economies of the West and the East.

The narrow waterway slicing peninsular Malaysia from Indonesia's sprawling Sumatra island, a hunting ground for pirates from ancient times until today, carries a third of global trade and most of the oil needs of Japan, South Korea and China.

Malaysia has denied that its weapons build-up - announced in stages over the past couple of years - could spark an arms race in the region, saying the purchases are simply designed to upgrade its defences and that it has no aggressive intentions.