Malaysia Seeks €226 Million from Norway Over Aborted Missile Deal
Quick Look
- Malaysia is seeking €226 million from Norway for direct losses and additional costs after Norway abruptly withdrew export licenses for Naval Strike Missiles, citing a new policy on defense exports.
- The 2018 deal with Kongsberg Defence & Aerospace was cancelled, provoking a furious response from Malaysian leaders.
AI-generated summary
Why It Matters
Malaysia signed a deal in 2018 with Kongsberg Defence & Aerospace to procure Naval Strike Missiles, paying nearly €126 million before Norway abruptly withdrew export licenses in March.
The claim comprised 129.86 million euros in direct losses, including payments already made by the government, and 96.26 million euros for additional costs and consequential damages, Defence Minister Mohamed Khaled Nordin told parliament on Friday, as quoted by the Malay Mail newspaper.
“The actual additional costs, or ‘overrun costs’, to be borne by the government have yet to be finalised as they depend on the settlement method agreed upon and the replacement weapons system currently under evaluation,” Khaled said.
Malaysia signed a deal with Kongsberg Defence & Aerospace to procure Naval Strike Missiles for its navy’s littoral combat ships in 2018. It had paid nearly 126 million euros towards the deal and was expecting initial delivery in March when Norway abruptly withdrew its export licences for the deal.
In blocking the deal, Norwegian authorities cited a new policy of restricting sensitive defence exports to Nato members and their closest partners.
Though they said the cancellation was not directly targeted at Malaysia, it provoked a furious response from the country’s leaders.
What to Watch
AI outlook — possibilities, not facts
Finalization of actual additional costs to be borne by the Malaysian government.
Likely · Within months
Evaluation and selection of a replacement weapons system for Malaysia's navy.
Likely · Within months
Open Questions
- How will the settlement method be agreed upon?
- What replacement weapons system will be chosen?
- What is the final amount of additional costs?
