Malaysia Wary of Tactics to Delay RM1.06 Billion Claim

Malaysia's Defense Ministry is cautious about a RM1.06 billion claim against Norwegian company Kongsberg Defence & Aerospace AS (KDA), following Norway's cancellation of a missile export license to Malaysia. Defense Minister Datuk Seri Mohamed Khaled Nordin stated that while the ministry is open to discussions with KDA regarding the claim, they are vigilant against any tactics that could unnecessarily prolong the settlement process.

KDA had requested discussions to resolve the claim, which arose after the Norwegian government canceled the export license for the Naval Strike Missile (NSM) and its associated launchers, citing national security concerns. The procurement, initially valued at EUR124 million (RM571.9 million) in April 2018, was intended to equip six new littoral combat ships.

Malaysia is seeking RM1.06 billion from KDA, comprising RM604 million in direct payments already made by the government and RM448.12 million for indirect claims related to the consequences of the failed supply. Meanwhile, a team of Royal Malaysian Navy officers is evaluating potential replacement missile systems from Turkey, South Korea, and other European nations.