"This represents a significant increase and will mean that the armed forces' modernisation programs will run smoothly next year and in the years to come," Najib was quoted as saying by The Sun daily.

The program will include the upgrading of firepower for the army and the purchase of 22 155mm howitzer cannons from South Africa, he said.

The ministry is also looking at buying light helicopters to improve surveillance, he added, but gave no details.

For the navy, Najib said the ministry had ordered six Super Lynx helicopters, costing some 700 million ringgit, which were expected to arrive in 2003 to replace the current WASP models.

"We are also considering the purchase of guided missiles to be used by the Super Lynx helicopters. This would upgrade the (navy's) capabilities and enable us to fire guided missiles from a longer distance," he added.

Najib said the ministry also planned to purchase 12 combat boats -- each costing between four million and five million ringgit -- apart from four being leased from Sweden.

Submarines were also being considered but not in the immediate future, he added.