The Star quoted Defence Minister Hishammuddin Hussein as adding that the construction would be monitored by his ministry and China’s State Administration for Science, Technology and Industry for National Defence.

On Tuesday, Prime Minister Najib Razak announced the purchase of the ships, a fast and agile type designed for various operations close to shore, during his official visit to China.

“This landmark decision is the first time Malaysia is procuring a defence asset from China,” Bernama quoted Hishammuddin as saying on Facebook yesterday.

He said the first LMS would be completed within 24 months of signing the contract.

The funding will come from the Royal Malaysian Navy through savings achieved by one of its programmes.

Hishammuddin, who is among the Malaysian delegates on the visit, said two LMS would be built in China while the others would be constructed in Malaysia.

Hishammuddin said the RMN would decommission old vessels, which were costly to operate and maintain, and channel the savings towards acquiring new ships with the latest equipment.

“Through this transformation, the armada will be revamped without compromising on national defence capabilities,” he added.

The 15 classes of vessels (with six ships per class) currently operated by the RMN were built by seven countries.

RMN chief Admiral Ahmad Kamarulzaman Ahmad Baharuddin was quoted as saying in The Star report: “The current fleet is not cost-effective and that is why the LMS is a high-priority project.”