Defence Minister Najib Razak said today that Malaysia, which has embarked on a major arms procurement program, has no plans to build a sophisticated military complex like the Pentagon.

The government's plan to build a credible armed forces was "more meaningful than building a complex", Najib was quoted as saying by Bernama news agency.

He said the government allocated about RM8 billion, or about 3.0 percent of the country's gross domestic product, annually for defence.

"I feel that it is neither too high nor too low," Najib said.

"We can only spend within our means. If we spend too much, it will affect the country's socio-economic development, so we must strike a balance between development and defence."

Malaysia has revived its armed forces modernisation programme which was derailed by the 1997/98 Asian financial crisis.

Missile systems

Last month it ordered British and Russian missile systems worth RM1.38 billion dollars to boost its air power and signed pacts worth RM304 million to buy assault rifles and equipment.

The government, which has long harboured ambitions to establish a submarine fleet, also agreed to order three French vessels in its maiden subs deal, official sources said. Jane's Defence Weekly has put the deal at RM5.7 billion.

Malaysia has also announced plans to buy more than 60 tanks from Poland and is considering a deal to buy Russian Sukhoi SU-30 fighter jets.

Its aggressive shopping spree has sparked fears of a regional arms race but Malaysia said its weapons procurement was not designed to attack perennial rival Singapore or any other country.