Malaysia Signs AugustaWestland Helicopters Deal

Malaysia has signed a US$126.8 million worth agreement to buy two Agusta Westland AW139 helicopters.

The contracts, memorandum of understanding and letters of acceptance, were signed at the General Police and Special Equipment Exhibition and Conference (GPEC) Asia today.

The agreement was signed in spite of cut down on subsidies and expenditure amid the dwindling economy, Malaysian Insider reported Thursday.

"Eight units of AG JAWS Armoured Personnel Carrier (APC) will also arrive in the country by year end," he said.

Early this year, Prime Minister Datuk Seri Najib Razak announced the postponement of several projects including the National Service for a year to save $94 million as part of the government's rationalisation plan.

The government's expenditure was expected to reduce by US$1.3 billion through a re-evaluation of priorities in expenses.

The decline in oil prices has led to a massive downfall of the ringgit as Malaysia is a major oil exporter. Economists have said that there was a need for Malaysian goverment to relook its budget.