Malaysia Seeks $251 Million Compensation After Norway Cancels Missile Export Permit

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Kuala Lumpur: Malaysia has announced plans to seek nearly $251 million in compensation from Norwegian defence company Kongsberg Defence & Aerospace after Norway revoked an export permit linked to a naval missile deal for Malaysia’s combat ships.

Defence Minister Mohamed Khaled Nordin said the government had issued a formal notice of demand following the cancellation, which blocked the delivery of the Naval Strike Missile system and launcher components already purchased by Malaysia.

According to the minister, Malaysia is claiming both direct and indirect losses. The direct losses amount to 126 million euros — around $146 million — already paid under the agreement, while additional costs linked to replacing and reconfiguring missile systems have pushed the total compensation claim to nearly 1 billion ringgit, or about $251 million.

Malaysia signed the missile agreement with Kongsberg in 2018 as part of a broader naval modernisation programme aimed at equipping its new littoral combat ships with advanced anti-ship missile capabilities.

Norway recently tightened export controls on sensitive defence technologies, limiting sales to close allies and strategic partners. The move led to the cancellation of the permit, triggering strong objections from Malaysia.

Khaled described the decision as a serious breach of trust that could damage confidence in international defence procurement agreements, warning that unilateral cancellations risk undermining global defence partnerships.

Norway’s foreign ministry acknowledged media inquiries on the matter, while Kongsberg had not publicly commented at the time of reporting.