Malaysia seeks more than $250 million from Norway over axed defence deal

KUALA LUMPUR, May 19 - Malaysia's defence minister on Tuesday said a notice has been sent to Norway seeking compensation of more than 1 billion ringgit ($251.76 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 ($146.66 million), or 95% 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. REUTERS