KUALA LUMPUR: Malaysia has every right to pursue appropriate compensation from Norway and the companies involved following the cancellation of an export licence for the Naval Strike Missile (NSM) system, says Datuk Seri Mohamed Khaled Nordin.
The Defence Minister said while Malaysia was actively exploring alternative solutions to meet its defence requirements, moving forward did not mean abandoning accountability.
"A substantial amount of public funds had already been allocated for the missile programme and that the country had suffered not only financial losses but also the loss of valuable time and opportunities.
"If Norway had informed Malaysia earlier about the cancellation of the export licence, those funds could have been channelled towards other purposes," he said in a statement on Monday (June 1).
He said that replacing a sophisticated system such as the NSM was neither simple nor quick, as identifying a suitable alternative, negotiating new contracts and integrating a replacement system into existing platforms would require significant time and resources.
"The implications extend far beyond financial losses alone," he added.
Khaled said the issue was no longer merely a bilateral contractual dispute, as it had directly affected Malaysia's defence and national security interests.
"A clear message must be sent to Norway and the international defence community that actions of this nature cannot be allowed to pass without accountability," he said.
Allowing breaches of defence commitments to go unpunished would increase the risk of similar incidents occurring in the future, he said.
"Norway must be held accountable in a way that serves as a meaningful lesson and deterrent, rather than being allowed an easy path to reconciliation without responsibility," he added.
Khaled also expressed concern over what it described as a growing trend in which commitments and contracts could be set aside due to political or ideological considerations, undermining trust in international agreements.
"Smaller nations and middle powers relied on a stable and predictable international environment where commitments and obligations were honoured.
"If countries or companies are able to withdraw from commitments without accountability, it will create a dangerous precedent for future defence, economic and strategic cooperation," he said.
Khaled emphasised that compensation was not simply about recovering money already spent, but about recognising the broader consequences of the cancellation.
"If Norway genuinely respected the principles of a rules-based international order and valued its long-standing relationship with Malaysia, it should support a fair and reasonable compensation process that takes into account the full impact of the decision.
"Malaysia is moving forward. However, Norway remains responsible for providing accountability and transparency to Malaysia and its people," he stressed.
Khaled described Norway's actions as inappropriate and reflective of an arrogance that should not be taken lightly, adding that bilateral relations had been tainted by deep mistrust.
"The situation cannot continue as normal. Moving forward must not come at the expense of the principles that underpin responsible international conduct," he said.
