Swedish firm Bofors Defence plans to set up a regional manufacturing and distribution centre in Malaysia for its naval gun systems, a minister said in remarks published Sunday.

The company expressed interest in the matter to Prime Minister Dr Mahathir Mohamad during his visit to Sweden last week, Defence Minister Najib Razak was quoted as saying by the New Sunday Times.

He said the premier responded positively to the Bofors plan to set up the centre in Lumut, the country's navy base in northern Perak state.

"We are pleased with the plan," Najib said.

Joint venture

Two local companies, Penang Ship Building Construction Bhd. and Naval Dockyard Bhd., will enter into a joint venture agreement with Bofors to manufacture and distribute the guns, he said.

No other details were available.

Mahathir pitched for investment during his three-day trip to Stockholm from September 22 and invited Swedish firms to use Malaysia as a springboard to market their products to Southeast Asia. - AFP