KUALA LUMPUR: Malaysia is awaiting a response from the supplier of the missile system intended for the Royal Malaysian Navy's Littoral Combat Ships (LCS) after discussions were held and claims submitted over the disrupted procurement.
Defence Minister Datuk Seri Mohamed Khaled Nordin said the government would consider its next course of action once it receives feedback from the company.
“Discussions have been held with the supplier and claims have been submitted.
“We are awaiting their response. Once there is any feedback, I will have to refer the matter to the government for further consideration and a decision,” he told a press conference on Thursday (Aug 27).
Mohamed Khaled said the Defence Ministry was working to resolve the issue involving the supply of missiles for the LCS.
“We are working hard to ensure that the issue involving the supply of missiles for our LCS can be resolved.
“When there is an update on the delivery timeline, I will inform the media,” he said.
The issue arose after Norway revoked the export licence for the Naval Strike Missile (NSM) system intended for the LCS programme, prompting Malaysia to pursue compensation and seek a resolution with the Norwegian supplier.
The NSM was originally procured to provide the LCS with its primary anti-ship strike capability.
Malaysia had paid about 95% of the missile contract, while the Defence Ministry has said the systems had been manufactured, tested and were ready for delivery when the export licence issue arose. The ministry subsequently invoked contractual provisions to safeguard Malaysia's interests and pursue claims for the payments and related damages.
Mohamed Khaled had previously said Malaysia had issued a notice of claim of about RM1bil, covering direct and indirect losses arising from the disruption to the procurement.
The government has also been evaluating alternative missile systems for the LCS, although the Royal Malaysian Navy has cautioned that any replacement would need to be compatible with the vessels' existing combat management system and could take time to procure and integrate.
The Public Accounts Committee has meanwhile urged the government to resolve the missile export licence issue quickly to ensure the LCS programme can proceed with complete defence systems and full combat capability.
