Malaysia weighs over RM1 billion budget for new naval missile system

At an event in Kota Tinggi, Johor, Defense Minister Khaled Nordin said Malaysia may have to earmark a new budget exceeding RM1 billion to replace the missile system intended for the Royal Malaysian Navy’s Littoral Combat Ships. The original deal with Norway’s Kongsberg Defence & Aerospace was voided after Norway restricted exports to “allies and close partners,” prompting the government to claim compensation for the largely paid-up RM634 million contract.

Nordin outlined that the replacement will be evaluated on price, delivery schedule—potentially three to four years—and how well it integrates with the French combat-management system already fitted on the vessels. The ministry is comparing proposals from Italy, Japan, France, Turkey and South Korea. He also warned that heightened military activity near Pulau Balabac, involving the Philippines and the United States, requires Malaysia to bolster its defence readiness.