Malaysia explores alternative naval missile systems after Norway revokes export licences, sparking a diplomatic row and compensation claims
KUALA LUMPUR: Malaysia is searching for alternate naval missile systems suppliers after the collapse of a deal with Norway, a top defence official said on Thursday.
The two countries have fallen into a diplomatic dispute after Norway revoked export approvals for certain technologies.
Oslo says the move has not intentionally targeted Malaysia, but Kuala Lumpur is still seeking over $257 million in compensation from the Norwegian company involved in the deal.
Malaysia’s government is “assessing and evaluating” missile systems that could replace Norway’s Naval Strike Missile (NSM) system, Defence Minister Mohamed Khaled Nordin said.
“The revocation of the export licence does not affect the planned delivery schedule of the LCS project,” he told parliament, referring to the country’s Littoral Combat Ship programme.
The programme is the Malaysian Navy’s long-delayed effort to build a class of modern, stealthy surface combat vessels as it strives to upgrade its fleet.
The LCS programme, first approved in Malaysia in 2011 with an initial contract worth six billion ringgit ($1.5 billion), was planned for six vessels.
The deal, which had been plagued by allegations of mismanagement and rising costs, was relaunched in 2023 following a government review, with the number of ships reduced to five.
Delivery of the first vessel, expected in August, has been pushed back to December due to delays in equipment deliveries and ongoing rework, according to officials cited in local media.
But Khaled, referring to the Norwegian deal, said “the Ministry wants to provide a guarantee that this development does not reflect preparedness (of) operations”.
“Assets and weapons systems are in place to carry out the responsibility to defend the sovereignty of the country’s waters,” he said.
