According to reports, the agreement also covers the transfer of technologies to Malaysia to facilitate localised licenced production and maintenance should the LY-80 be selected to meet Malaysian Armed Forces requirements.

The LY-80 or HQ16A is a Chinese-made ground-to-air defence missile system which was introduce in the Chinese armed forces in September 2011. This is a land based version of the HQ-16 system used in ships (and fired from VLS (Vertical Launch System) containers.

The HQ16A (LY-80) missile can intercept an aerial flying target from an 15 m to 18 km of altitude, while its maximum interception range for combat aircraft is 40km, and between 3.5 km and 12 km for cruise missiles flying at an altitude of 50 meters at a speed of 300 meters/second.

The HQ16A (LY-80) SAM components comprise a searching radar vehicle, command vehicle, radar tracking and guidance vehicle, launcher unit vehicle, and missiles canister. Technical support equipment includes missile transportation and loading vehicle, power supply vehicle, maintenance vehicle, and missile-test equipment. A single radar guidance vehicle controls two to four launcher units with six missiles ready to launch. The command vehicle is responsible to send target information and combat orders.