Malaysia began negotiating for the acquisition of 2 submarines from Armaris of France and Navantia of Spain in 1998 and signed the 1.084 billion euro deal in June 2002. The deal provoked controversy when people who were involved in the deal filed a lawsuit against a friend of PM Najib Tun Razak, who was defence chief at the time had been designated as the main negotiating agent for the deal. The purchase was made without going through a tender.

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