Malaysia has officially issued a notice of claim exceeding RM1 billion against a Norwegian defence company following the failure to deliver anti-ship missile systems for the Royal Malaysian Navy’s Littoral Combat Ships (LCS).
Defence Minister Mohamed Khaled Nordin said the government is seeking compensation for both direct and indirect losses after Norway unilaterally revoked the export licence for the Naval Strike Missile (NSM) system.
According to Khaled, Malaysia had already paid €126 million (RM583 million), equivalent to 95 per cent of the contract value, before the licence was cancelled.
“Yesterday, we sent a notice to the Norwegian company. We are claiming both direct and indirect costs,” he said.
“The direct cost alone amounts to €126 million, which is the amount we already paid them,” he added.
The missile system was intended for installation on the Royal Malaysian Navy (TLDM) Littoral Combat Ships, a key defence project aimed at strengthening Malaysia’s maritime security capabilities.
The dispute is expected to further impact the already delayed LCS programme, which has faced years of setbacks, rising costs and public scrutiny.
Malaysia’s move signals the government’s firm stance in seeking accountability and financial recovery over the failed defence procurement arrangement.
