KOTA TINGGI: Malaysia wants Norway to expedite a refund for a cancelled missile procurement deal, says Datuk Seri Mohamed Khaled Nordin (pic), insisting that Oslo cannot absolve itself of responsibility in the matter.
The Defence Minister said he had recently met Norway’s Defence Minister Tore O. Sandvik and conveyed Malaysia’s position that the Norwegian government’s refusal to approve an export licence was the root cause of the issue.
“The source of everything is Norway’s decision not to approve the export licence to Malaysia.
“Therefore, Norway cannot wash its hands of this matter because it was that decision that caused the problem,” he said after meeting with taxi drivers at Kota Tinggi taxi and bus terminal.
Norway had refused to approve the export licence for the Naval Strike Missile (NSM) system that Malaysia had purchased for its Littoral Combat Ships (LCS).
Mohamed Khaled said he had told his Norwegian counterpart that if Norway was sincere about maintaining good bilateral relations with Malaysia, it should help facilitate the refund process.
He suggested that the Norwegian government consider advancing the repayment before seeking reimbursement from the company involved.
“As a government, Norway can negotiate with its company rather than forcing Malaysia to wait indefinitely,” he said.
Malaysia’s direct losses over the cancelled procurement is over RM600mil, with indirect costs pushing the overall impact beyond RM1bil.
Mohamed Khaled said the funds are needed to enable Malaysia to secure an alternative missile system for the navy.
He said additional expenses would arise from sourcing a replacement missile system, integrating it with the navy’s existing combat systems and conducting fresh training programmes.
“Who is going to bear those costs when the failure to supply the missiles was not caused by Malaysia?”
While the ministry is currently evaluating alternatives from several countries, including Italy, France, Turkiye, South Korea, the United States and Japan, he said priority would lean towards missile systems already in production, as a new order could take between four and six years to be delivered.
Mohamed Khaled said the government had accepted Norway’s apology but would continue pursuing compensation and other claims arising from the failed procurement.
“We accept the apology, but our claims remain. If Norway truly values its friendship with Malaysia, then it should help resolve this issue,” he said.
