Malaysia weighs legal action after Norway blocks missile export for LCS programme
Defence Minister Datuk Seri Mohamed Khaled Nordin attends the launch of the Prowira Ready-to-Work (RTW) Graduate Programme and Yayasan LTAT Education Initiative 2026 in Kuala Lumpur, May 14, 2026. —
Thursday, 14 May 2026 3:48 PM MYT
KUALA LUMPUR, May 14 — The Defence Ministry is considering legal action after Norway moved to block the export of Naval Strike Missiles (NSM) for Malaysia’s littoral combat ship (LCS) programme.
According to Malaysiakini, Defence Minister Datuk Seri Mohamed Khaled Nordin said the government had already paid nearly 95 per cent of the contract value, amounting to more than RM500 million.
He reportedly said a special ministry-level committee had been formed to detail Malaysia’s claims, including refunds and damages arising from breach of contract.
“We will not only seek recovery of funds paid, but also compensation for the consequences of the breach that has affected the government,” he was quoted as saying.
Khaled said the LCS programme would continue despite the setback, adding that the issue only involved the missile system and not the overall construction of the ships.
Khaled said the LCS programme would continue and the ships would still be completed, although they would not have surface-to-surface missiles until Malaysia secures a replacement system.
The missiles were ordered in 2018 for the Royal Malaysian Navy’s LCS fleet, with Norway reportedly refusing to approve the export licence shortly before shipment.
Defence Minister Datuk Seri Mohamed Khaled Nordin had said the missiles were scheduled for delivery in March this year, and were intended for the LCS fleet as well as naval vessels KD Jebat and KD Lekiu.
Reuters reported that Kongsberg Defence & Aerospace AS said export licensing decisions are handled by Norwegian authorities, while Norway’s Foreign Affairs Ministry said it had revoked certain export licences related to specific technologies, citing stricter controls.
The NSM procurement was formalised between the Royal Malaysian Navy and Kongsberg Defence & Aerospace AS in April 2018, in a deal worth €124 million, or about RM571.9 million, to equip six new LCS vessels.
Before Simply Saman check first how much Norway Sovereign Wealth Fund has invested in Bolehland.
ReplyDeleteNorway's sovereign wealth fund, the Government Pension Fund Global (GPFG), has invested approximately US$3.15 billion (about RM14.1 billion) in Malaysia. This total accounts for roughly 0.2% of its global investment portfolio and is divided between Malaysian equities and fixed-income assets. The fund's Malaysian portfolio breaks down as follows:
Equities: The fund holds shares in around 200 Malaysian companies, valued at roughly US$2.8 billion. Its largest exposures are in the financial sector (including major banks like CIMB, Maybank, and Public Bank), followed by the industrial and technology sectors.
Fixed Income: Valued at approximately US$1.47 billion, this portion consists primarily of Malaysian government bonds and holdings in national energy company Petroliam Nasional Bhd (Petronas).The GPFG is managed by Norges Bank Investment Management. You can explore the fund's live holdings and global activities on the Norges Bank Investment Management portal