KUALA LUMPUR, July 6, 2026 — Defence Minister Dato’ Seri Mohamed Khaled Nordin updated the Dewan Rakyat on the Norwegian government’s unilateral cancellation of the export licence for the Naval Strike Missile (NSM) system intended for the Royal Malaysian Navy (TLDM).
In the ministerial briefing session, Khaled Nordin stated that the procurement of the NSM began in 2011, with contracts finalised in 2018 and 2023. The total contract value stood at €137.91 million (RM642.6 million). By November 2025, Malaysia had fulfilled 95% of its payment obligations.
Norway suspended the export licence in February 2026 and cancelled it permanently in April 2026. The reason cited was Norway’s policy of exporting such systems only to NATO member countries and its allies. The supplier, Kongsberg Defence & Aerospace (KDA), classified the decision as force majeure.
The minister noted that the absence of the NSM does not affect the delivery schedule of the Littoral Combat Ships (LCS). However, it limits TLDM’s anti-surface warfare capabilities. The navy is currently evaluating several alternative missile systems as replacements.
Khaled Nordin described Norway’s action as undermining the principles of international agreements, commitments, and trust, while setting a negative precedent for defence cooperation.
The Malaysian government will defend its rights and interests through diplomatic and legal channels. The Defence Ministry has submitted a Notice of Claim (Notis Tuntutan) to KDA for €226.1 million (RM1.05 billion), while continuing efforts to reach an amicable resolution.
The episode, he said, highlights the strategic risks of over-reliance on foreign supply chains. The government will therefore accelerate efforts to strengthen Malaysia’s domestic defence industry under the National Defence Industry Policy (DIPN) to reduce dependence on foreign technology.
The NSM is a long-range, precision-guided anti-ship and land-attack missile developed by Norway’s Kongsberg Defence & Aerospace. The deal was originally intended to equip TLDM vessels. Earlier reports indicated Norway had apologised for the cancellation during high-level engagements but stood by its export policy decision.
The parliamentary briefing provides the latest official update on the matter, including specific figures on payments made and the compensation claim.
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