‘Vehement objection’: Malaysia's PM Anwar slams Norway’s ‘unacceptable’ move over scrapped defence deal
Signed contracts are "solemn instruments" and "not confetti to be scattered in so capricious a manner", said Malaysian Prime Minister Anwar Ibrahim.
KUALA LUMPUR: Malaysia has voiced its "vehement objection" to Norway's "unilateral and unacceptable" decision to revoke export approvals for a naval strike missile system intended for its combat ships, said Prime Minister Anwar Ibrahim on Thursday (May 14).
He added that he conveyed this in a telephone conversation with his Norwegian counterpart Jonas Gahr Stoere.
"Malaysia has honoured every obligation under this contract since 2018: scrupulously, faithfully and without equivocation," Anwar wrote on Facebook.
"Norway, it appears, has not felt compelled to extend us the same courtesy and demonstration of good faith."
He added that he told Stoere Norway's move would have grave consequences for Malaysia's defence operational readiness and its littoral combat ship (LCS) modernisation programme as well as "carry broader ramifications for the regional balance".
"Signed contracts are solemn instruments. They are not confetti to be scattered in so capricious a manner," said Anwar.
"If European defence suppliers reserve the right to renege with impunity, their value as strategic partners flies out the window."
Malaysia's defence ministry said last week it would seek clarification from Oslo over the decision, which officials have said was made just days before the missiles were scheduled to be delivered in March.
Meanwhile, Malaysia's defence minister said on Thursday the country planned to claim compensation and was considering legal action against Norway's decision.
Defence Minister Mohamed Khaled Nordin said the government had already paid nearly 95 per cent of the contract value when Norway pulled the approvals in March.
The defence arm of Norwegian group Kongsberg said in 2018 it had agreed a 124 million euros (US$145.23 million) contract with the Royal Malaysian Navy to supply NSM missiles for six LCS.
Mohamed Khaled said on Thursday there was a second deal to supply the system to two other naval vessels.
"We are doing the computation right now - we would not only claim the amount that we have paid, but also the damages arising from the breach of contract," he told reporters, according to a recording of his remarks provided by the ministry to Reuters.
The Norwegian Foreign Affairs Ministry did not immediately respond to requests for comment on Thursday.
It said last week it had decided to revoke certain export licences related to specific technologies that were now subject to stricter controls, while Kongsberg said licensing decisions were handled wholly by Norwegian authorities and that it had complied with all applicable regulations.
Malaysia's LCS project, launched in 2011, was supposed to supply the navy with five of six planned vessels by 2022 at an initial cost of 6 billion ringgit (US$1.53 billion), but the local shipbuilder tasked with building the ships failed to deliver them.
Amid allegations of mismanagement and corruption, the government relaunched the project in 2023 following an official investigation.
The delivery of the first vessel, originally scheduled for August this year, has been delayed until December due to late equipment deliveries from manufacturers and ongoing rework issues.
Minister Mohamed Khaled said the LCS programme would continue as planned but without a missile system installed.
Malaysia was also evaluating several alternatives to the NSM system, but the process was complicated as any replacement would have to be compatible with the ships' existing equipment, he added.
