Defence Minister Mohamed Khaled Nordin says Norway’s NSM export licence cancellation will not delay Malaysia’s Littoral Combat Ship delivery schedule.
KUALA LUMPUR: The planned delivery schedule for the Littoral Combat Ship (LCS) project has not been affected by Norway’s cancellation of the export licence for the Naval Strike Missile (NSM) system, the Dewan Rakyat was told.
Defence Minister Datuk Seri Mohamed Khaled Nordin said the cancellation also did not affect the current operational readiness of the Malaysian Armed Forces, as the Royal Malaysian Navy still has existing assets and weapons systems to defend the country’s waters.
He said the ministry viewed Norway’s decision seriously, but assured that Malaysia’s maritime defence readiness remained intact.
“For the LCS project, the cancellation of the export licence does not affect the planned vessel delivery schedule.
“At the same time, the ministry, particularly through the Royal Malaysian Navy, is assessing and studying potential missile systems to replace the NSM system,” he said in a parliamentary reply dated July 1.
Khaled was replying to Mohd Kurniawan Naim Moktar (PN-Kinabatangan), who asked about the implications of Norway’s cancellation of the NSM export licence on Malaysia’s maritime defence readiness, particularly the LCS project, and the mitigation measures being taken by the government.
Khaled said the ministry had implemented, and would continue to implement, several measures to ensure the country’s maritime defence readiness remained protected.
These include continuing life-extension and maintenance programmes for existing assets, diversifying weapons procurement sources, and strengthening defence diplomacy to ensure continuity in strategic supply chains.
He said the incident was also an important lesson on the risks of depending on a single supplier.
Khaled said the ministry would accelerate the implementation of the National Defence Industry Policy to strengthen the local defence industry and would prioritise government-to-government procurement for future strategic purchases to reduce the risk of unilateral contract disruption or cancellation.
Meanwhile, Nordin Ahmad Ismail (PN-Lumut) asked the ministry to state the losses and financial implications borne by the government following the cancellation of the export permit.
In a separate reply, Khaled said the actual financial loss resulting from the cancellation of the NSM export permit was still being assessed by the Royal Malaysian Navy.
He said the direct cost already paid for the procurement amounted to €124.35 million (RM584.5 million).
“The ministry is now taking the appropriate action to recover the payment, as well as claim damages from the company involved, to protect the country’s interests and ensure public funds are safeguarded,” he said.
Khaled said the ministry would continue taking all necessary action in accordance with the contract and existing laws to ensure the government’s interests were protected.
