Malaysia seeks €216m compensation from Norwegian firm over scrapped missile deal

Published connected 19/05/2026 - 11:55 GMT+2•Updated 11:56

Malaysia is seeking much than $251 cardinal (€216 million) successful compensation from a Norwegian institution implicit a scrapped woody to proviso a rocket strategy for caller warships, the defence curate said connected Tuesday.

Mohamed Khaled Nordin said the authorities had sent a announcement to Kongsberg Defence & Aerospace demanding compensation for some "direct and indirect costs" implicit Norway's determination to revoke export approvals for the rocket system, sparking a diplomatic row.

Oslo's overseas ministry has confirmed "that definite licences related to the export of circumstantial defence exertion to Malaysia person been revoked."

This was "solely owed to Norway's exertion of the export power regulations and it is regrettable that this affects Malaysia," the ministry said, adding that it could not remark connected idiosyncratic contracts.

The determination had blocked transportation of the Naval Strike Missile strategy arsenic good arsenic launcher components that had been destined for Malaysia's littoral combat vessel programme nether the presumption of a 2018 deal.

Mohamed Khaled told reporters astatine the Lumut naval shipyard, astir 160 kilometres from the superior Kuala Lumpur, that Malaysia was seeking a full of much than 1.0 cardinal ringgit (€216 million) successful compensation.

"The nonstop costs magnitude to €126 million, which we person paid to them, and we are besides seeking indirect costs," helium said.

Malaysian Prime Minister Anwar Ibrahim said past week helium raised his "vehement objection" successful a telephone telephone with his Norwegian counterpart Jonas Gahr Støre, calling the determination "unilateral and unacceptable."

Anwar warned the determination "will person sedate consequences for Malaysia's defence operational readiness and the Littoral Combat Ship (LCS) modernisation programme."

The LCS programme, archetypal approved successful Malaysia successful 2011 with an archetypal declaration worthy 6 cardinal ringgit was for six vessels.

The deal, which had been plagued by allegations of mismanagement and rising costs, was relaunched successful 2023 pursuing a authorities review, with the fig of ships reduced to five.

Delivery of the archetypal vessel, expected successful August, has been pushed backmost to December owed to delays successful instrumentality deliveries and ongoing rework, according to officials successful section media reports.

Mohamed Khaled said Norway's determination had raised questions astir the "reliability of planetary commitment" of defence partners, particularly involving Western countries and members of NATO.

"What has happened to america is not conscionable a defence procurement issue...but it reflects a larger problem, namely an erosion of spot among countries successful planetary narration matters," helium said.

"What Norway has done whitethorn beryllium emulated oregon done by different countries."

Local media reported that Mohamed Khaled volition conscionable with his Norwegian counterpart Tore O. Sandvik successful Singapore aboriginal this period during the yearly Shangri-La Dialogue defence forum.