Govt awaiting Kongsberg’s response to claim on scrapped missile deal

The Malaysian government is awaiting a response from Norway's Kongsberg Defence & Aerospace AS following its claim over the cancellation of a naval strike missile system deal. Defence Minister Khaled Nordin stated that the government would weigh further action after receiving the company's response, as reported by Bernama. Negotiations have taken place with the supplier, and a claim has been lodged.

Khaled Nordin clarified that the government is eagerly anticipating Kongsberg's reply before forwarding the matter to the government for a thorough evaluation and decision. Malaysia had placed an order for the Kongsberg system in a 2018 contract to equip six littoral combat ships. Regrettably, the Norwegian government subsequently withdrew the export permit, asserting that defence technology exports would be restricted to its allies and closest partners.

The Malaysian government is presently seeking a compensation package exceeding RM1 billion from Kongsberg to cover both direct and indirect losses, as the government has already remitted 95% of the RM634 million procurement value.