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KUALA LUMPUR: Malaysia’s defence procurement plans have faced a fresh setback after Norway confirmed that there will be no missile deal with Malaysia following the cancellation of an export licence for the Naval Strike Missile (NSM) system.
The missile system was originally planned for Malaysia’s Littoral Combat Ship (LCS) programme, which involves the construction of warships for the Royal Malaysian Navy.
According to reports, the contract involved the supply of NSM missiles and launch systems by Norwegian defence company Kongsberg Defence & Aerospace. However, Norway later withdrew the export licence, citing tighter controls over the transfer of sensitive defence technology.
The move has raised concern in Putrajaya, especially as Malaysia had reportedly paid almost 95 per cent of the contract value before the licence was cancelled.
Defence Minister Datuk Seri Mohamed Khaled Nordin said the government is assessing the amount of compensation that can be claimed, including payments already made and losses linked to the contract breach.
Prime Minister Datuk Seri Anwar Ibrahim had also criticised the decision, describing it as a unilateral move that could affect confidence in European defence suppliers.
The issue adds further pressure to Malaysia’s LCS programme, which has already faced delays and public scrutiny in recent years. The cancellation means Malaysia may now need to consider alternative missile systems to ensure the country’s maritime defence requirements are not affected.
Norway has expressed regret over the impact of the decision on Malaysia but maintained that the move was made in line with its updated defence export policy.
Malaysia is expected to continue pursuing diplomatic and legal options to protect its interests and seek fair compensation over the cancelled missile deal.
