Malaysia could spend more than RM1 billion to replace a Norwegian missile system cancelled earlier this year, according to Malaysian media.
Malaysia’s Defence Minister Mohamed Khaled Nordin said the replacement could cost between RM700 million and more than RM1 billion, as the country cannot wait for the recovery of funds from the cancelled procurement.
The cancelled deal involved Norway’s Naval Strike Missile (NSM), developed by Norwegian defence company Kongsberg Defence & Aerospace for Malaysia’s Littoral Combat Ships.
Malaysia had previously sought more than RM1 billion in compensation following Norway’s decision to revoke the export licence for the missiles. Norway’s decision came amid changes to its defence export policy.
Khaled said Malaysia is now considering alternative missile systems, with cost, delivery time and compatibility with the navy’s existing combat systems among the factors being assessed.
The replacement process could therefore result in Malaysia spending a significant additional amount while it continues to seek compensation over the cancelled Norwegian deal.
The latest development adds a new financial dimension to the dispute between Malaysia and Norway over the missile procurement.
Source: New Straits Times
