Malaysia seeks 1 billion ringgit compensation from Norway after missile exports revoked

Malaysia is seeking more than 1 billion ringgit (approximately $216 million) in compensation from Norway after Oslo revoked export approvals for a naval missile system, a move that has escalated into a diplomatic dispute. Defence Minister Mohamed Khaled Nordin announced the formal compensation notice on Tuesday, stating the government is demanding repayment for both direct and indirect costs incurred.

The cancelled deal involved the Naval Strike Missile (NSM) system and associated launcher components from Norwegian firm Kongsberg Defence Aerospace, intended for Malaysia’s Littoral Combat Ship (LCS) programme under a 2018 contract. The Norwegian foreign ministry confirmed it had revoked certain licences for defence technology exports to Malaysia, citing the application of its export control regulations. The ministry stated the decision was due to a changing security landscape globally and was regrettable, but necessary under its policy of limiting such exports to allies and closest partners.

Minister Mohamed Khaled specified that Malaysia had already paid approximately 126 million euros, representing about 95 percent of the contract’s value, which constitutes the direct costs...