Science and Technology Minister Jamaludin Jarjis told the official Bernama news agency that the satellite project was a natural progression after Malaysia entered the space age this month.

Its first astronaut, Sheikh Muszaphar Shukor, blasted off aboard a Soyuz space craft and visited the International Space Station in a program linked to the billion-dollar purchase of Russian fighter jets.

Although Malaysia already has a privately-owned communications satellite, Measat, a government-owned one was required to keep up with the "needs of the times", the minister said from Moscow.

Jamaludin told the New Straits Times that the satellite would boost Malaysia's security and be more cost-effective.

"Currently we depend on NASA satellites to transmit voice and visual data. Our armed forces and police would benefit from greater security through the use of our own satellite and the public from the faster speed of data transmission," he said.

Jamaludin said he would present the proposal for Cabinet approval.