Prime Minister Datuk Seri Najib Tun Razak said the government will look into the budgetary consideration for the contract for the MiG-29N replacement programme.
He said: "We are looking at our defence requirement in the future but it is not so much in terms of our future needs, but it is a question whether we can afford and it is also the question of budgetary consideration.
Najib said this when asked about the possibility of France winning the contract for the MiG-29N replacement programme.
We also have to grapple with a fiscal deficit reduction in Malaysia because we need to strengthen our micro and fiscal level, he added.
He told a joint media conference in conjunction with French Prime Minister Jean-Marc Ayraults official visit to Malaysia, here today.
Hence, he said within Malaysia's real reliability, the government needed to see not only in the multirole combat aircraft but also the other hardware that is considered including helicopter and weapons.
It also depends on the nature of the threat that Malaysia was likely to face in the near and medium term, as you know we had the incursion in Sabah.
So the nature of the threat has evolved into low intensity although it is still dangerous but is not in the classical conventional warfare.
"But we take note on the Rafales success in its bidding in India, he added.
In the meantime, the Prime Minister of France also was asked whether there was any discussion with Najib relating to the jet fighter replacement programme proposal.
He said: There is a discussion relating on military and defence matters but France is ready to participate for the tender.
But to say if there is any opportunity for France (to win the bid), it is up for Malaysia to say so but for sure we will participate, he added.