
The pair of Vastergotland-class submarines, named after Swedish counties, are a "cost effective buy to enhance the submarine capabilities" of Singapore's navy, the ministry said in a statement.
The Vastergotlands are 48.5 metres long and were launched in Sweden between 1986 and 1988. They are expected to be put to use in Singapore in 2010.
The purchase enables the Singapore navy to retire some of the oldest boats in its fleet.
The Swedish submarines will be "upgraded and converted for operations in tropical waters" before they are delivered, the ministry said.
The navy acquired four Challenger-class boats from Sweden in the late 1990s.
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