Malaysia is pushing Norway to speed up a refund of more than US$250 million tied to a cancelled missile system deal for its navy, arguing that Oslo’s decision to revoke an export licence directly caused the collapse of the contract, CNA reports.
The dispute centres on Naval Strike Missile systems for Malaysia’s littoral combat ships. Malaysia had already paid around 95 per cent of the contract value to Norwegian defence company Kongsberg Defence & Aerospace before the export approval was withdrawn.
Malaysia’s Defence Minister Mohamed Khaled Nordin says Norway triggered the breakdown.
“The source of everything is Norway’s decision not to approve the export licence to Malaysia,” he said, adding that Norway therefore “cannot wash its hands of this matter because its decision caused the problem.”
He urged Oslo to help resolve the financial dispute more quickly.
“If Norway truly wants to maintain its friendship with Malaysia, it can help by prioritising the return of more than RM1 billion,” he said, according to Malaysian media.
Norway rejects responsibility for a state refund, pointing instead to export control rules and the supplier contract.
Speaking to CNA, Norwegian Defence Minister Tore O. Sandvik said restrictions apply to close security partners.
“It’s nothing to do with Malaysia, the restrictions from the security authorities are now restricted to NATO members and close partners of NATO,” he said.
He added that financial responsibility sits with the company under Norwegian law.
“According to Norwegian law, it’s the board of directors of the company who is responsible for answering that question,” Sandvik said.
Malaysia is now looking at alternative suppliers in countries including Italy, Japan, France, Turkey and South Korea, while its naval modernisation programme continues to face delays.
