Malaysia moves to sue Norwegian firm over revoked missile export licence
Malaysia has referred its dispute with a Norwegian defence company over the cancelled Naval Strike Missile licence to the Attorney-General’s Chambers, seeking a claim exceeding RM1 billion.
The Malaysian government has forwarded its dispute with a Norwegian defence contractor to the Attorney-General’s Chambers, aiming to recover over RM1 billion after Norway unilaterally revoked the export licence for the Naval Strike Missile system. Deputy Defence Minister Adly Zahari noted that Malaysia had already paid €126 million (RM583 million), representing 95 % of the contract value, before the licence was withdrawn.
The claim seeks compensation for both direct and indirect expenses incurred. In parallel with potential international legal proceedings, Mindef is reviewing various procurement options to replace the missile system, including open tender and government-to-government cooperation, with Turkiye identified as a possible partner. The ministry also emphasized that it will not compromise on the technical specifications of the Littoral Combat Ships, despite a delay in the first vessel’s delivery, and has placed officers at Lumut Naval Shipyard to monitor construction and testing.
Why it matters
The dispute could cost Malaysia over RM1 billion and affect the navy's readiness and future defence procurement.
In this story
