Malaysia is demanding nearly 251 million US dollars from Norwegian defense company Kongsberg Defence & Aerospace after Norway suddenly blocked the delivery of advanced naval missiles already paid for by the Southeast Asian country, ABC News reports.
The dispute marks a dramatic escalation in a case that has already strained relations between Malaysia and Norway.
Malaysia’s Defence Minister Mohamed Khaled Nordin said the government has formally demanded compensation after Norway revoked the export permit for the Naval Strike Missile (NSM) system intended for Malaysia’s littoral combat ships.
According to the minister, Malaysia had already paid around 126 million euros – equal to about 146 million US dollars – for the missile system.
On top of that, Malaysia is now seeking compensation for indirect losses. These include the cost of removing missile launch systems already installed on naval vessels and integrating replacement systems instead.
The total claim now stands at around 1 billion Malaysian ringgit, or approximately 251 million US dollars.
The NSM anti-ship missile system was part of a 2018 agreement under Malaysia’s naval modernization program. The missiles were to be supplied by Kongsberg Defence & Aerospace.
However, Norway recently tightened controls on exports of sensitive defense technology. Norwegian authorities have said such systems will now mainly be sold to close allies and strategic partners.
Malaysia reacted strongly when the export permit was revoked earlier this year. The latest compensation demand signals that the issue is far from over.
Mohamed Khaled Nordin described the cancellation as a serious breach of trust.
“When such commitments can be unilaterally revoked, confidence in the entire system begins to erode,” he said.
“We hope ASEAN countries and nations that are not close allies of Norway will learn from Malaysia’s experience and avoid purchasing or dealing with Norway.”
Neither the Norwegian Foreign Ministry nor Kongsberg had publicly responded to the compensation claim at the time of writing.
