A F-35 fighter plane flies over the White House in Washington DC on June 12, 2019.  (ERIC BARADAT / AFP)

SINGAPORE - The US State Department has approved the sale of up to 12 F-35 fighter jets and related equipment to Singapore at an estimated cost of US$2.75 billion, pending approval from Congress, Washington's Defense Security Cooperation Agency said on Friday.

The State Department has made a determination approving a possible foreign military sale to Singapore of up to twelve F-35B...aircraft and related equipment for an estimated cost of $2.750 billion.

US Defense Security Cooperation Agency's statement

The tiny Asian city-state said last year it planned to buy an initial four F-35s from Lockheed Martin Corp, with an option for eight more, as it looks to replace its aging F-16 fleet.

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"The State Department has made a determination approving a possible foreign military sale to Singapore of up to twelve F-35B...aircraft and related equipment for an estimated cost of $2.750 billion," the DSCA said in a statement, adding it had notified Congress of a possible sale.

DSCA said the sale involved equipment from Lockheed and engine maker Pratt and Whitney. The F-35B variant of the jet can handle short takeoffs and vertical landings, attributes seen as benefiting land-scarce Singapore.

The Pentagon in October announced F-35 jet prices for the next three years which lowered the cost of the jet by 13 percent, a move seen as encouraging other nations to buy the warplanes. The jet currently makes up about 25 percent of Lockheed's annual revenue.

With Southeast Asia's largest defense budget, Singapore is a key prize for global arms companies as it looks to invest in new technology and upgrade its equipment. 

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Singapore, which is expected to hold an election within months, set aside about 30 percent of its total expenditure on defence, security and diplomacy efforts in its 2019 annual budget.