Malaysia weighs legal action after Norway blocks missile export for LCS programme
KUALA LUMPUR, May 14 — The Defence Ministry is considering legal action after Norway moved to block the export of Naval Strike Missiles (NSM) for Malaysia’s littoral combat ship (LCS) programme.
According to Malaysiakini, Defence Minister Datuk Seri Mohamed Khaled Nordin said the government had already paid nearly 95 per cent of the contract value, amounting to more than RM500 million.
He reportedly said a special ministry-level committee had been formed to detail Malaysia’s claims, including refunds and damages arising from breach of contract.
“We will not only seek recovery of funds paid, but also compensation for the consequences of the breach that has affected the government,” he was quoted as saying.
Khaled said the LCS programme would continue despite the setback, adding that the issue only involved the missile system and not the overall construction of the ships.
Khaled said the LCS programme would continue and the ships would still be completed, although they would not have surface-to-surface missiles until Malaysia secures a replacement system.
The missiles were ordered in 2018 for the Royal Malaysian Navy’s LCS fleet, with Norway reportedly refusing to approve the export licence shortly before shipment.
Defence Minister Datuk Seri Mohamed Khaled Nordin had said the missiles were scheduled for delivery in March this year, and were intended for the LCS fleet as well as naval vessels KD Jebat and KD Lekiu.
Reuters reported that Kongsberg Defence & Aerospace AS said export licensing decisions are handled by Norwegian authorities, while Norway’s Foreign Affairs Ministry said it had revoked certain export licences related to specific technologies, citing stricter controls.
The NSM procurement was formalised between the Royal Malaysian Navy and Kongsberg Defence & Aerospace AS in April 2018, in a deal worth €124 million, or about RM571.9 million, to equip six new LCS vessels.
