KUALA LUMPUR, May 19, 2026 – Malaysia has strongly criticised Norway for cancelling the export licence of Kongsberg Naval Strike Missiles (NSM) intended for the Royal Malaysian Navy’s Littoral Combat Ships (LCS) programme, despite nearly 95% of the contract value already being paid.
In a statement issued today, Defence Minister Dato’ Seri Mohamed Khaled Nordin described the move as a serious breach of international trust that undermines confidence in global defence procurement.
“The unilateral cancellation by Norway raises major questions about the reliability of international commitments, even though Malaysia has fulfilled almost all its contractual obligations, including 95% payment,” Khaled said.
The contract with Norway’s Kongsberg Defence & Aerospace for the NSM system and launchers was signed in 2018 and is valued at over RM500 million (approximately US$115–120 million). The missiles were meant to equip the Maharaja Lela-class LCS vessels.
Norway reportedly invoked stricter export controls and limited deliveries to NATO and partner nations only, effectively blocking the supply to non-NATO Malaysia. The revocation occurred in March 2026, triggering a diplomatic row.
Prime Minister Datuk Seri Anwar Ibrahim earlier condemned the decision, raising Malaysia’s “vehement objection” directly with Norwegian Prime Minister Jonas Gahr Støre. Anwar warned that the move could damage trust in European defence suppliers.
Malaysia to Pursue Compensation and Self-Reliance
Khaled confirmed that the Defence Ministry has issued a formal notice of demand to Kongsberg, seeking full compensation for both direct and indirect losses. A special committee has been formed to explore legal options, including potential lawsuits for breach of contract.
“What happened to us is not just a defence procurement issue, but reflects an erosion of trust in international relations,” the minister added.
Malaysia is also accelerating efforts to strengthen its domestic defence industry to achieve greater strategic autonomy and reduce reliance on foreign suppliers.
The minister made the remarks while visiting a shipyard, standing near one of the LCS vessels under construction, underscoring the government’s commitment to completing the programme despite the setback.
This latest development adds to ongoing challenges faced by Malaysia’s LCS project, which has already encountered delays and cost issues in recent years.
Malaysia is expected to continue diplomatic engagements with Norway, with Khaled scheduled to meet his Norwegian counterpart at the upcoming Shangri-La Dialogue in Singapore for further clarification.
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