Malaysia viewed Norway’s handling of the matter as inconsistent with the long-standing friendship between both countries, particularly after Malaysia signed the contract in 2018 and was due to receive the system this year.
PETALING JAYA: Malaysia has warned Norway that the cancellation of its export licence for the Naval Strike Missile (NSM) system will leave a “permanent scar” on bilateral relations, despite an apology from Norwegian Defence Minister Tore O. Sandvik.
Defence Minister Datuk Seri Mohamed Khaled Nordin said he conveyed Malaysia’s disappointment directly to Sandvik during a meeting on the sidelines of the Shangri-La Dialogue 2026 in Singapore on May 31.
READ MORE: Malaysia explores new missile options after Norway cancels NSM deal
He said Malaysia viewed Norway’s handling of the matter as inconsistent with the long-standing friendship between both countries, particularly after Malaysia signed the contract in 2018 and was due to receive the system this year.
“I met the Norwegian Defence Minister and conveyed honestly and clearly our disappointment and regret, because the long, close and good relationship that had existed between Norway and Malaysia has been affected by this episode involving the cancellation of the Naval Strike Missile.
“The Norwegian Defence Minister conveyed his apology, but also explained the basis for the cancellation, which we may accept, whether it is true or otherwise, if they truly did not want to proceed or had cancelled the export licence for the NSM,” he said.
Khaled said Malaysia’s concerns centred on three issues; late notification, a unilateral decision and the absence of any effort by Norway to help Malaysia recover payments already made.
He said Malaysia was informed in April, while the missile was supposed to be delivered in March, and that the formal cancellation of the export licence was not communicated at the time.
“Secondly, the decision was made unilaterally. Thirdly, what does not reflect two countries with good relations is that there was no effort to help us recover what we had paid,” he said.
Khaled added that Malaysia might have continued to regard Norway as a genuine partner if the Norwegian government had taken responsibility by arranging a refund, either in full or in part, before recovering the money from Kongsberg Defence & Aerospace AS.
He said Sandvik would bring the matter back to his government, although he was doubtful Malaysia would receive a favourable outcome.
“The absence of all this shows that there is little meaning to statements that Malaysia–Norway relations are good, long-standing, and should be strengthened, because what we have gone through will become a permanent scar in Malaysia–Norway relations.
“It is not possible for it to return to what it was before,” he said.
Khaled said Malaysia had issued a notice of legal action against Kongsberg, adding that Norway could still demonstrate goodwill by helping Malaysia recover the payments made.
The issue first emerged on May 14 after Norway revoked export licences for the Kongsberg-made missile system intended for Malaysia’s Littoral Combat Ship (LCS) programme.
The setback has added pressure to the long-delayed LCS programme, which was signed in 2011 with the first vessel originally expected to be delivered later this year.
The project cost has risen to RM11.2 billion from the original RM9 billion, despite the number of ships being reduced from six to five.
On May 16, Khaled said the Defence Ministry had established three committees following the cancellation, covering legal and contractual claims, possible replacement systems, and diplomatic engagement.
In a further development, he said yesterday that the United States is considering allowing the sale of a replacement NSM system to Malaysia.
