Malaysia is awaiting a response from Norwegian defence company Kongsberg Defence & Aerospace (KDA) over a claim submitted following the cancellation of a Naval Strike Missile (NSM) procurement deal, Malaysia’s Defence Minister Mohamed Khaled Nordin said on Thursday.
The government will consider further action once it receives the company’s response, Khaled said, adding that discussions with KDA had already taken place.
The dispute concerns NSM systems intended for Malaysia’s Littoral Combat Ships. The Norwegian government previously revoked the export licence for the missiles and associated launchers, citing national security and tighter controls on sensitive defence technology.
The contract between the Royal Malaysian Navy and KDA was signed in April 2018 and was valued at €124 million (RM571.9 million). The deal was intended to equip six new LCS vessels.
Malaysia has previously said it had paid almost 95% of the contract value before Norway halted the export. The country has since suspended new defence procurements from Norway while it seeks a resolution to the dispute.
