Defence minister: Norway needs to be held responsible for missile export cancellation, Malaysia’s right to ask for compensation

KUALA LUMPUR, June 1 — Malaysia has the right to claim appropriate compensation from Norway and the company involved, following the cancellation of the Naval Strike Missile (NSM) export licence, said Defence Minister Datuk Seri Mohamed Khaled Nordin.

He said the claim is justified given that Malaysia has suffered financial losses, as well as lost valuable time and opportunity as a result of the cancellation.

“A substantial amount of public funds was allocated for this programme. If Norway had informed us earlier about the export licence cancellation, those funds could have been redirected to other purposes,” he said in a statement today.

Mohamed Khaled made these remarks in response to a New Straits Times article today titled “Move on from missile deal and find replacement”. 

He said Malaysia is indeed moving forward and actively exploring alternative solutions to meet the nation’s defence needs; however, actions taken without accountability cannot be accepted or simply overlooked.

He stressed that finding a replacement for the NSM system is no easy task, as a weapon of such sophistication cannot be swapped out overnight.

He said the process would require fresh contract negotiations and the integration of a new system into existing platforms, all of which demand considerable time, cost and resources.

“More critically, this episode transcends a bilateral contract dispute. It has left our national defence and security in a vulnerable position.

“A firm message must be sent to Norway and the international defence community: such actions will not go unanswered or unaccounted for,” he said.

He added that Norway must be held accountable in a meaningful way, as both a lesson and a deterrent, to ensure this does not happen again, rather than being let off without consequence.

“What is equally concerning is the growing tendency for commitments and contracts to be set aside based on political or ideological considerations, thereby undermining trust in international agreements,” he said.

Describing Norway’s action as unjustified and damaging to bilateral ties, Mohamed Khaled said smaller nations and middle powers rely on a stable and predictable international environment, where every commitment and obligation is honoured.

“If a country or company can walk away from commitments without any accountability, it sets a dangerous precedent for defence, economic and strategic cooperation in the future. Therefore, compensation is not merely about recovering money that has been spent.

“If Norway truly respects the principles of a rules-based international order and values its long-standing relationship with Malaysia, then it should support a fair and reasonable compensation process, one that takes into account the full impact of this cancellation,” he said. — Bernama