Malaysia’s Defence Minister Datuk Seri Mohamed Khaled Nordin has described the collapse of a naval missile system deal with Norway as having caused a “permanent scar” on bilateral relations between the two countries.
He said Norway’s decision and handling of the issue had raised serious doubts over long-standing diplomatic assurances, adding that such statements about strong and trusted ties now carried little meaning in light of recent developments.
In a broader defence procurement context, the incident highlights the risks faced by countries relying on international arms agreements, where policy shifts in exporting nations can significantly affect long-term military planning.
Speaking at a press conference in Singapore following talks with his Norwegian counterpart on the sidelines of the Shangri-La Dialogue 2026, Khaled said Malaysia must carefully reassess the reliability of its defence partners moving forward.
He stressed that the country must now distinguish between genuinely committed partners and those whose reliability may be uncertain in critical defence arrangements.
Earlier, Khaled revealed that Malaysia is seeking more than RM1 billion in damages from Norwegian defence company Kongsberg Defence & Aerospace after the export licence for a naval strike missile system was revoked.
He said the cancellation came despite Malaysia having already paid 95% of the contract value, forcing the government to issue a formal notice of demand to the company.
The procurement agreement, signed in April 2018, was intended to equip six new littoral combat ships for the Royal Malaysian Navy.
Khaled expressed hope that the Norwegian government would take responsibility by advancing funds already paid by Malaysia and later recovering the amount from the manufacturer.
He also noted that Norway had revoked the export licence citing restrictions on defence technology exports to allies and close partners, as well as shifting global security conditions.
In a related development, Khaled said the Norwegian defence minister had issued an apology over the cancellation, although the decision itself would remain unchanged.
