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A DIPLOMATIC dispute has erupted between Malaysia and Norway after Oslo revoked export approval for Naval Strike Missiles destined for the Royal Malaysian Navy, triggering outrage in Kuala Lumpur and raising wider concerns over the reliability of Western defence partnerships.
The cancellation affects a US$145 million agreement signed in 2018 between the Malaysian government and Norwegian defence contractor Kongsberg Defence & Aerospace for the supply of Naval Strike Missiles and launch systems for six Maharaja Lela-class Littoral Combat Ships.
A further US$11.19 million contract signed in 2025 covered missile launchers intended for the navy’s two Lekiu-class frigates already in active service.
Malaysian officials said more than 95 per cent of the original contract value had already been paid before Norway invoked “force majeure” provisions to terminate the deal.
Prime Minister Datuk Seri Anwar Ibrahim delivered a blistering rebuke of the decision, accusing Norway of acting unilaterally and jeopardising Malaysia’s national security interests.
“Signed contracts are solemn instruments. They are not confetti to be scattered in so capricious a manner,” Anwar said in a statement issued on Thursday.
According to Malaysian defence officials, the government first learned of Norway’s new arms export restrictions during the Defence Services Asia Exhibition last month, when Defence Minister Mohamed Khaled Nordin met a Norwegian delegation led by State Secretary Eivind Vad Petersson.
What had been expected to be a routine bilateral meeting instead became notification that Norway would no longer permit exports of the Naval Strike Missile to countries outside NATO and designated NATO partner states.
Malaysia is not a NATO member.
Secretary-General of Malaysia’s Defence Ministry Datuk Lokman Hakim Ali confirmed that Norway formally invoked force majeure to void the agreement.
“We are very disappointed with the decision, and we will seek to claim back the money paid under the contract,” Lokman said.
Officials believe the revocation may be linked to United States export restrictions on a gyroscope component integrated into the missile system. The component, manufactured in the US, is understood to fall under tightened controls on third-party transfers involving sensitive defence technology.
The Naval Strike Missile system is currently operated by several Western militaries, including those of United States, United Kingdom, Australia, Poland and Netherlands.
The controversy has intensified scrutiny over the future of Malaysia’s troubled Littoral Combat Ship programme, which has already suffered years of delays, political disputes and corruption allegations.
The ships, based on the Gowind-class corvette design by Naval Group, were initially contracted in 2014 under Malaysian shipbuilder Boustead Naval Shipyard before the government later assumed control of the company and renamed it Lumut Naval Shipyard.
The first vessel, the future Maharaja Lela, is now expected to be delivered in December 2026 after repeated setbacks stretching back nearly a decade.
Anwar said he had personally conveyed Malaysia’s “vehement objection” to Norwegian Prime Minister Jonas Gahr Støre during a telephone conversation, warning the decision would have “grave consequences” for Malaysia’s defence preparedness and future international defence cooperation.
“If European defense suppliers reserve the right to renege with impunity, their value as strategic partners flies out the window,” Anwar said.
Industry sources indicated Malaysia may now pivot towards France’s Exocet missile system as a replacement armament package for the Littoral Combat Ships, though analysts caution that integration changes could trigger further delays and additional costs for the already troubled programme. - May 15, 2026
