Efforts to modernise the Royal Malaysian Navy continue with the awarding of a Letter of Intent to UK firm BAE Systems for two additional Jebat-class frigates. RMN inducted the first two frigates - KD Lekiu and KD Jebat - in 1999 and discussions have long been underway to add more vessels to the fleet.
        
BAE Systems, through its Naval Ships business, based in Glasgow, Scotland, will collaborate with Malaysia's Labuan shipyard on the project. The two frigates operated by the RMN were built in the BAE Systems facility at Scotstoun in the 1990s. The contract for the two ships is expected to create substantial
employment opportunities in Malaysia, with an emphasis on graduate opportunities.
       
The Malaysian Government has nominated Labuan Shipbuilding and Engineering in Malaysia (LSE) as the lead Malaysian facility. LSE will work with BAE Systems Naval Ships and technology transfer will benefit the Malaysian shipyard and the Malaysian maritime industry in general.
      
"The frigate programme and the opportunities it creates are hugely positive for the future of the maritime industry in Malaysia at all levels," said Malaysian Deputy Prime Minister and Minister for Defence, Dato' Sri Mohd Najib Tun Razak. "The Labuan Shipyard will be undertaking significant elements of the construction, assembly and the launch of the vessels and a Malaysian supply chain will contribute via the integration of 'Made in Malaysia' items into the two frigates," he added.

The purchase of two additional frigates will significantly contribute to the development of local shipbuilding capabilities and provide a boost for the Malaysian defence industry. Malaysia has embarked on a long term programme to develop its local naval shipbuilding capabilities.

In view of this, Malaysia hopes that the partnership with BAE Systems, a company with deep experience in this field, will contribute to this aim in the long term. Aside from cooperation in shipbuilding, BAE Systems and other partners in the programme will also work with existing and new Malaysian defence firms in the areas of systems and armaments.

Some of the firms are beneficiaries of the previous frigate purchase and have already acquired some experience in this area. Aside from the purchase of two frigates, the Royal Malaysian Navy will also implement several modernisation programmes during the 9th Malaysia Plan, including investments in new information and communication technologies, radar and surveillance equipment.

The entry into service of the RMN submarines will also add additional operational and support requirements and generate business opportunities for local and international firms.