KUALA LUMPUR – Malaysia’s defence minister announced Thursday the country plans to seek compensation and consider legal action against Norway for revoking export approvals on naval strike missile (NSM) systems, just as delivery loomed for Malaysian combat ships.
Defence Minister Mohamed Khaled Nordin revealed the government had paid nearly 95 percent of the €124 million (S$185 million) contract with Kongsberg Defence when approvals were pulled in March. A second deal covered two additional vessels. “We are doing the computation right now – we would not only claim the amount that we have paid, but also the damages arising from the breach of contract,” he told reporters.
Norway’s Foreign Affairs Ministry cited stricter controls on specific technologies, with Kongsberg insisting full compliance. The move blindsided Kuala Lumpur, prompting Prime Minister Anwar Ibrahim to call it “unilateral and unacceptable” in a call with Norwegian counterpart Jonas Gahr Stoere. “Signed contracts are solemn instruments… If European defence suppliers reserve the right to renege with impunity, their value as strategic partners flies out the window,” Anwar stated on social media.
The revocation threatens Malaysia’s defence readiness and regional balance, especially amid delays in the littoral combat ships (LCS) program. Launched in 2011 at RM6 billion (S$1.9 billion), the project faced corruption probes, relaunching in 2023. The first vessel’s delivery slips to December without missiles, as Malaysia scouts compatible alternatives.