Malaysia Seeks $251 Million from Kongsberg After Missile Deal Cancellation
Malaysia seeks $251M from Kongsberg after Norway revoked a naval missile deal export permit, impacting defense procurement.
Lauren Collins ·
Malaysia is seeking $251 million in compensation from Kongsberg Defense & Aerospace AS following Norway's revocation of an export permit. This action prevented the delivery of Naval Strike Missile (NSM) systems and launcher components for Malaysia's littoral combat ships.
The claim includes 126 million euros ($146 million) in direct costs already paid for the missile systems. Additionally, Malaysia is seeking substantial indirect costs, bringing the total claim to approximately 1 billion ringgit ($251 million).
Kongsberg Defense
Indirect costs encompass the removal of previously installed missile mounting systems and the integration of replacement systems on naval vessels. The original agreement for the NSM anti-ship missile system was signed in 2018 as part of Malaysia's naval modernization program.
Norway's Foreign Ministry indicated that oversight of sensitive defense technology sales has been strengthened, restricting them to allies and close partners. Malaysia's government has formally issued a notice of demand to Kongsberg regarding the cancellation.