KUALA LUMPUR: Norway’s unilateral decision to revoke the export licence for the Naval Strike Missile (NSM) system to Malaysia has been described as a major setback for the Royal Malaysian Navy’s modernisation plans, says Tan Sri Mohd Anwar Mohd Nor.
The former Armed Forces chief said it also raised concerns over the risks of relying on foreign defence systems.
“The situation, however, was not due to any failure on Malaysia’s part as the government had fulfilled all contractual obligations and commitments agreed upon previously.
“However, risks like this can happen to any country because defence export decisions ultimately depend on the nation supplying the defence system,” he said in an interview recently.
He said the revocation of the export licence meant the navy’s Littoral Combat Ships (LCS) could not be fitted with their main missile system as originally planned, affecting the fleet’s combat capabilities.
“It also disrupted the modernisation programme for the navy’s 23rd Frigate Squadron involving KD Jebat and KD Lekiu, which were slated to be equipped with the NSM system.
“If we do not act quickly to find alternatives, the fleet’s capabilities will be delayed even longer,” he said.
Mohd Anwar, who is also former chairman of the Armed Forces Fund Board, said the Navy should expedite its evaluation process to identify suitable alternatives to ensure long-term operational readiness is not compromised.
“At the same time, the NSM issue should serve as a “wake-up call” for Malaysia to reduce its dependence on foreign countries for strategic defence procurement,” he added.
He said risk assessment elements must now become a key factor in all future defence acquisitions, especially those involving sensitive and strategic systems such as missiles.
“We need to incorporate risk assessment into every future procurement. For strategic systems like missiles, government-to-government guarantees are crucial to ensure export approvals are secured before further negotiations with contractors proceed.
“Such an approach is important to ensure Malaysia only works with countries that consistently honour defence delivery commitments and are less susceptible to policy or geopolitical shifts,” he said.
Commenting on legal action and compensation claims being considered by the government, Mohd Anwar said the estimated RM1bil claim against the NSM manufacturer could cover not only procurement costs but also the impact on the country’s strategic defence readiness.
“We can claim not only what has already been paid, but also the impact on national defence capabilities as the decision was made when the ships were nearing completion.
“All of these factors, including delays and disruptions to the country’s strategic planning, can be included in the claim,” he said.
The claim could be brought through arbitration or other appropriate legal channels as part of efforts to defend national interests and ensure accountability over contracts that had already been agreed upon, Mohd Anwar lamented.
Defence Minister Datuk Seri Mohamed Khaled Nordin previously said Malaysia had officially issued a notice of claim exceeding RM1bil against a Norwegian defence company following the failure to deliver the NSM system.
Norway’s decision to revoke the export licence was also criticised by Prime Minister Datuk Seri Anwar Ibrahim, who described the move as unacceptable.
The Prime Minister was quoted as saying that Malaysia had fulfilled every obligation under the contract since 2018 diligently, faithfully and without any hesitation.
