Defence minister says technical evaluations for a new missile system to replace the Naval Strike Missile for the LCS will be completed this month.
KUALA LUMPUR: Technical evaluations at the Ministry of Defence (MINDEF) and Royal Malaysian Navy (RMN) level to select a missile system to replace the Naval Strike Missile (NSM) for the Littoral Combat Ship (LCS) will be completed by the end of this month.
Defence Minister Datuk Seri Mohamed Khaled Nordin said RMN and MINDEF are evaluating several surface-to-surface missile systems from original equipment manufacturers (OEMs) in several countries that could potentially replace the NSM, whose export licence was revoked by Norway.
He said the offers and proposals from these companies would be assessed comprehensively based on RMN’s operational needs.
“It encompasses several aspects, namely the system’s ability to be integrated with the LCS Combat Management System, the delivery timeline, overall procurement cost and, lastly, the level of technology and operational capacity that is equivalent to or better than the NSM.
“Insya-Allah, if everything goes smoothly, the technical evaluation at RMN and MINDEF level will be completed by the end of this month, before it is taken to the next level of assessments,” he said during a briefing session at the Dewan Rakyat today.
Mohamed Khaled said the Norwegian government’s unilateral decision to revoke the export licence for the NSM system to Malaysia is not merely a matter involving a defence procurement contract, but one that touches on the country’s strategic interests, the use of public funds and national defence preparedness.
He explained that the NSM procurement process began in 2011 before a €128.7 million contract was signed in 2018 to equip the Littoral Combat Ships (LCS), while another contract worth €9.19 million was signed in 2023 for two launcher sets for KD Jebat and KD Lekiu, bringing the total to about RM642.6 million (€137.91 million).
He said Malaysia had fulfilled all contractual obligations, including payments amounting to €129.8 million (about RM600 million), or more than 95% of the total contract value, prior to the scheduled delivery of the missiles in March 2026.
However, on Feb 4, Kongsberg Defence and Aerospace (KDA) said that the Norwegian government had suspended the export licences for both contracts without giving any reason, before a permanent cancellation was later communicated in April on the grounds that Norway only exports the system to NATO member countries and its allies.
“This is actually an act that undermines the principles of international agreement, commitment and trust. Moreover, the agreement signed was based on trust and understanding between the two countries to meet defence requirements.
“Norway’s action belittles and disregards the interests of the Malaysian Government in bilateral relations. The Norwegian government has absolutely no respect for the spirit of friendship and cooperation that Malaysia has shown over the years. The Malaysian Government is indeed deeply disappointed and regrets Norway’s action,” he said.
Mohamed Khaled said although the absence of the NSM limits the anti-ship warfare capability of the LCS, which can only use a 57-millimetre (mm) cannon with a firing range of around 10 kilometres (km), it does not affect the delivery schedule of the LCS to the RMN.
The Kota Tinggi Member of Parliament said the Malaysian Armed Forces will continue to carry out operations to defend the country’s waters, airspace and borders as usual.
Meanwhile, he said the government will defend Malaysia’s rights and interests, with MINDEF having issued a letter of claim to KDA amounting to €226.1 million (about RM1.05 billion), covering payments made as well as direct and indirect losses arising from the export licence cancellation.
He said that based on advice from the Attorney-General’s Chambers, the government will first seek an amicable settlement with the company through negotiations slated for mid-August before considering follow-up actions.
Mohamed Khaled added that the episode showed that heavy reliance on foreign supply chains carries strategic risks to national defence.
As such, he said, the government is strengthening the implementation of the National Defence Industry Policy (NDIP) to enhance the capacity of the local defence industry, including the capability to produce rockets and missiles, so that Malaysia becomes more resilient and able to defend its sovereignty independently in the future.
