SINGAPORE, May 31 — Malaysia is doubtful it will recover nearly RM543 million already paid to Norway for anti-ship missiles and has delivered a veiled warning that the cancellation could harm their long-standing bilateral relationship.
Defence Minister Datuk Seri Mohamed Khaled Nordin raised the issue during a bilateral meeting with his Norwegian counterpart on the sidelines of the Shangri-La Dialogue here today, Bernama reported.
“We have honestly and clearly expressed our disappointment because a long, close and good relationship has existed between Norway and Malaysia (yet) through this NSM cancellation episode,” he was quoted as saying.
The Naval Strike Missile (NSM) system was procured from Kongsberg Defence and Aerospace in 2018.
Malaysia has sent a formal letter of demand to Norway to refund about 95 per cent of the RM571.9 million contract signed in 2018 to equip six Littoral Combat Ships, and is now waiting for an official reply.
“This matter will be brought by the Norwegian Defence Minister to his government, but whether we will get a favourable decision or not, I am doubtful,” Khaled was quoted as saying.
“We will see if the Norwegian government really wants to protect this good relationship and maintain the friendship. They might take action to prioritise what we have already paid,” he added.
Norway’s Defence Minister Tore O. Sandvik had earlier conveyed an apology to Malaysia over the export licence cancellation.
