Malaysia is in talks with at last six countries on the possibility of using palm oil to pay for arms, as Southeast Asia's third-biggest
economy seeks to replace old equipment to boost its defence capabilities.
Malaysia has struggled to update its defence equipment over the years and a cut in its defence budget this year all but derailed efforts to replace navy ships, some of which have been in service for 35 years or more.
Costs have been a big hurdle but using palm oil to help pay for equipment could open new avenues to upgrade, Defence Minister Mohamad Sabu said on Monday.