Malaysia has reportedly signed a MYR535.7m ($126.76m) contract to purchase two AgustaWestland AW139 helicopters.

As part of the development, a memorandum of understanding and letters of acceptance were signed at the General Police and Special Equipment Exhibition and Conference (GPEC) Asia in Kuala Lumpur, Malaysia.

Home Minister Datuk Seri Ahmad Zahid Hamidi was quoted by The Malaysian Insider as saying: "Eight units of AG JAWS Armoured Personnel Carrier (APC) will also arrive in the country by year end."

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

The new development comes amidst the government’s plan to cuts down on subsidies and expenditure to support the economy.

Earlier, Malaysian Prime Minister Datuk Seri Najib Razak postponed several projects including the National Service for a year to save MYR400m ($94.65m), the Malaysian Insider reported.

Powered by two Pratt & Whitney PT6C turboshaft engines, the AW139 is a 15-seat medium sized twin-engine helicopter designed to perform in hot and high conditions with inherent multirole capability and flexibility of operation.

Having a cruise speed of 165k, the aircraft features a low acoustic signature, integrated mission avionics and a full ice protection system to accomplish missions in demanding, all-weather conditions.

In addition, the helicopter features advanced systems including a high-definition FLIR system, search / weather radar, cabin mission console, naval transponder, search light and a satellite communication system.

In addition to Malaysia, the helicopter is being operated by countries, including Italy, the UK, the US, Spain, Estonia, Japan and the Republic of Korea.

In July, AgustaWestland received an order from the Armed Forces of Malta to deliver its AW139 helicopter.