Replacing cancelled Norway missiles could cost Malaysia over RM1bil
KOTA TINGGI: Procuring a new surface-to-surface missile system after Malaysia’s Naval Strike Missile (NSM) deal with Norway was cancelled could cost the government more than RM1 billion.
Defence Minister Datuk Seri Mohamed Khaled Nordin revealed that procuring a new surface-to-surface missile system after Malaysia's cancelled Naval Strike Missile (NSM) deal with Norway could cost more than RM1 billion. The Norwegian government's refusal to provide a refund for payments already made by Malaysia has left the Defence Ministry considering suppliers from three other countries.
The cost is estimated between RM700 million and over RM1 billion. Khaled emphasized that the Norwegian government's decision was a significant challenge, as they unilaterally revoked the export licence without prior notice. Despite Malaysia paying nearly 95% of the total contract value, the Norwegian government has refused to advance a refund.
Khaled also mentioned that the ministry is evaluating several factors beyond price, such as delivery timelines and technological compatibility with the existing Combat Management System (CMS) on the ships. The missiles' integration with the French-made CMS on the ships is a crucial aspect that needs consideration.
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