Malaysia demands RM1.06 billion from Norwegian firm over canceled missile deal

Malaysia is seeking RM1.06 billion from Norwegian defense firm Kongsberg Defence & Aerospace AS (KDA) following the cancellation of a naval anti-ship missile (NSM) procurement.

Defense Minister Datuk Seri Mohamed Khaled Nordin stated the demand includes RM600 million (EUR129.86 million) in direct payments already made by the government. An additional RM450 million (EUR96.26 million) is being claimed for indirect costs and consequences arising from the failure to supply the missile system.

Nordin explained that the exact amount of additional costs, or "overrun costs," is still being determined. This depends on the agreed-upon settlement method and the evaluation of alternative weapon systems. He was responding to a question about the status of the KD Maharaja Lela ship's sea trials and the potential overrun costs from the NSM contract cancellation.

Regarding the KD Maharaja Lela, Nordin confirmed that its sea trials, conducted by Lumut Naval Shipyard (LUNAS), began on April 29 and are progressing positively. Several tests and evaluations are underway to verify the performance of the ship's platform, navigation, propulsion, and other key systems before its official acceptance by the Royal Malaysian Navy. The final acceptance is contingent upon the completion of sea acceptance trials, rectification of any technical findings, and final confirmation by the navy.