Malaysia will begin negotiations with Norway’s Kongsberg Defence & Aerospace (KDA) in August in an effort to reach an amicable settlement following the cancellation of an export licence for the Naval Strike Missile (NSM), Defence Minister Datuk Seri Khaled Nordin told Parliament on Monday.
Khaled said the decision to enter negotiations follows legal advice from the Attorney General’s Chambers, with the government seeking to resolve the contractual dispute through diplomatic discussions before considering any further legal action.
He explained that the negotiations will focus on clarifying the status of the contract between Malaysia and KDA, identifying the obligations of both parties and determining the appropriate next steps.
“The main objective of the negotiations is to discuss the status of the contract between Malaysia and KDA to find a diplomatic solution, determine the contractual obligations and identify the follow-up actions that can be taken,” Khaled said during a special ministerial briefing.
The dispute involves the Naval Strike Missile (NSM) surface-to-surface missile system, which was originally intended to equip the Royal Malaysian Navy’s Littoral Combat Ship (LCS) programme, a multi-billion-ringgit defence project that has faced years of delays and challenges.
