KUALA LUMPUR — Malaysia's defence minister on Tuesday (May 19) said a notice has been sent to Norway seeking compensation of more than 1 billion ringgit (S$321.6 million), after Oslo abruptly cancelled export approvals for a naval strike missile system intended for Malaysian combat ships.
Norway has said certain export licenses of specific defence technology to Malaysia were revoked due to a shift in in Oslo's export control regulations.
The decision caught Malaysia off guard and sparked a diplomatic row, with its Prime Minister Anwar Ibrahim calling the move "unilateral and unacceptable".
Defence Minister Mohamad Khaled Nordin said the government would seek compensation for both direct and indirect costs, adding that Malaysia had already paid around 126 million euros (S$187.6 million), or 95 per cent of the contract value, for the missile systems.
Malaysia would also seek additional damages to cover the cost of dismantling and replacing equipment on ships built to accommodate the Norwegian-made missiles, as well as for re-training personnel, he told reporters.
Mohamed Khaled said Norway's decision raised questions over the trustworthiness of international defence partners, particularly those from Western or Nato countries.
"What has happened to us was not just a defence procurement issue. It reflects a larger problem, namely, the erosion of trust among countries in international relations," he said.
The Norwegian ministry of foreign affairs did not immediately reply to a request for comment on the Malaysian compensation request.
The defence arm of Norwegian group Kongsberg said in 2018 it had agreed a 124 million euro contract with the Royal Malaysian Navy to supply NSM missiles for six littoral combat ships.
Mohamed Khaled said last week there was also a second deal to supply the system to two other naval vessels.
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