Malaysia seeks 250 million$ compensation from Norway over missile dispute

Malaysia is demanding more than 250 million$ from Norway after Oslo cancelled a missile export deal for Malaysian warships.

Malaysia is seeking more than 250 million USD, in compensation from Norway after Oslo revoked export approvals for a Norwegian naval missile system intended for Malaysian combat ships, Reuters reports.

Malaysia’s Defence Minister Mohamed Khaled Nordin said the government had formally notified Norway of its compensation claim. The claim includes both direct and indirect costs linked to the cancelled missile deliveries.

The dispute centres around the Naval Strike Missile system produced by Norwegian defence company Kongsberg Defence & Aerospace. The company signed a 124 million euro agreement with the Royal Malaysian Navy in 2018 to supply missiles for six littoral combat ships.

According to the Malaysian government, around 95% of the contract value had already been paid before Norway revoked the export approvals. Malaysia is also seeking damages linked to dismantling equipment already installed on naval vessels and retraining military personnel.

Norway has said the export licences were withdrawn due to changes in Norwegian export control regulations. Malaysian Prime Minister Anwar Ibrahim earlier described the decision as “unilateral and unacceptable”, warning it could damage trust in Western and NATO defence partners.

Norway’s foreign ministry declined to comment on the specific case but said it looked forward to continued dialogue and cooperation with Malaysia.

About Alexander Vittrup

Journalist Alexander Christian Vittrup was employed at ScandAsia Magazine and Website for six months from August 2025 until August 2026.

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