KUALA LUMPUR – The Malaysian government is seeking EUR226.13 million (approximately RM1.06 billion) from supplier Kongsberg Defence & Aerospace AS (KDA) following Norway’s cancellation of the export license for the Naval Strike Missile (NSM) system.
Defense Minister Datuk Seri Mohamed Khaled Nordin revealed that the total sum includes a direct claim of EUR129.86 million, which accounts for payments already disbursed by the government.
An additional indirect claim of EUR96.26 million is being sought to cover consequential costs and side effects resulting from the supplier’s failure to deliver the system.
“Regarding the cancellation of the NSM export license by the Norwegian government, the exact amount of additional or overrun costs to be borne by the government has yet to be finalized. This depends on the agreed resolution method and the alternative weapon replacement options currently being evaluated,” Khaled said.
The minister was responding to a written parliamentary question from Datuk Seri Ikmal Hisham Abdul Aziz (PN-Tanah Merah), who inquired about the total overrun costs from the cancelled missile contract and the progress of sea trials for the littoral combat ship (LCS) KD Maharaja Lela.
Progress on KD Maharaja Lela
Addressing the status of KD Maharaja Lela, Khaled noted that Lumut Naval Shipyard (LUNAS) commenced sea trials on April 29, 2026, which have proceeded according to schedule and shown positive progress.
A series of phased tests and evaluations are ongoing to verify the vessel’s platform performance, navigation, propulsion, and other core systems before it is officially handed over to the Royal Malaysian Navy (RMN).
“The official acceptance of the ship is subject to the completion of the Sea Acceptance Trial, rectification of any technical findings, and final verification by the RMN,” Khaled added. – June 26, 2026