Malaysia To Buy Chinese Missiles for Technology Transfer

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Malaysia has agreed in principle to purchase medium-range missiles from China, which in return will transfer technology on very short-range air defense to the country, Deputy Prime Minister Najib Razak said July 20.

The procurement of the surface-to-air missiles is part of the armed forces modernization program, and would be included as part of the Ninth Malaysia Plan, from 2006-2009, he was quoted as saying by Bernama news agency.

“Details of the procurement and offset program will be finalized later should Malaysia give its full commitment,” he said after signing a memorandum of understanding on the purchase. The cost of the weapons was not revealed.
Under the pact between China National Precision Machinery Import and Export Corp. and two local companies, CNPMIEC would transfer technology on production of the FN-6 shoulder-launched missile to Malaysia if it purchases China’s medium-range KS-1A missiles, Bernama said.

This includes provisions for special test facilities, tools, manufacturing process documents, training and technical support.

CNPMIEC President Wang Bingyan said China had also offered to conclude the KS-1A transaction on flexible payment terms, including counter-trade, barter and deferred payments.

Malaysia has procured very short-range air defense systems from Russia, Pakistan and Britain under the Eighth Malaysian Plan, from 2001-2005, Bernama said.

The government has in the past two years embarked on a major arms procurement spree, ranging from Russian Sukhoi fighter jets and British missile systems to French submarines and Polish attack tanks.

Malaysia has denied its weapons build-up could spark an arms race in the region, saying the purchases are simply designed to upgrade its defenses and that it has no aggressive intentions.
 
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