KUALA LUMPUR, May 19 (Reuters) – Malaysia’s defense minister said on Tuesday he had sent a notice to Norway seeking more than 1 billion ringgit ($251.76 million) in compensation after Oslo abruptly canceled export approval for a naval strike missile system for Malaysian warships.
Norway said it had revoked certain licenses to export specific defense technology to Malaysia due to a shift in Oslo export control regulations. The decision caught Malaysia off guard and sparked a diplomatic spat, with Prime Minister Anwar Ibrahim calling the move “unilateral and unacceptable”.
• Defense Minister Mohamad Khaled Nordin said the government would seek compensation for direct and indirect costs, adding that Malaysia had paid about 126 million euros ($146.66 million), or 95% of the contract value, for the missile system.
• Malaysia will also seek additional damages to cover the cost of removing and replacing equipment on ships used to house Norwegian-made missiles and retraining personnel, he told reporters.
• Mohammed Khalid said Norway’s decision raised questions about the credibility of international defense partners, especially those from Western or NATO countries.
• “What’s happening to us is not just a defense procurement issue. It reflects a larger issue, which is the erosion of trust between countries in international relations,” he said.
• Norway’s foreign ministry did not immediately respond to a request for comment on Malaysia’s request for compensation.
• Norway’s Kongsberg Group’s defense arm said in 2018 it had signed a €124 million contract with the Royal Malaysian Navy to supply NSM missiles to six littoral combat ships. Mohammed Khalid said last week that a second deal had also been struck to supply the system to two more naval ships.
(USD 1 = RM 3.9720)
(1 USD = 0.8591 Euro)
(Reporting by Rozanna Latiff; Additional reporting by Gwladys Fouche in Oslo; Editing by Martin Petty)