Norway Shoots Down Malaysian Kongsberg NSM Deal

NORWAY’S Ministry of Foreign Affairs confirmed that the certain licences related to the export of specific defence technology to Malaysia was revoked. Malaysia’s was due to take delivery of Kongsberg’s Naval Strike Missiles (NSM) surface-to-surface missiles (SSM) for the Royal Malaysian Navy’s (RMN) Littoral Combat Ships (LCS) but the deal was axed by Norway’s last-minute decision.

Malaysia had signed a deal with Kongsberg in 2018 for the purchase of NSMs to be equipped onboard the Royal Malaysian Navy’s (RMN) Littoral Combat Ships (LCS) being built. In addition to that, Malaysia had previously planned to procure more NSMs for use on other RMN warships.

“The Ministry of Foreign Affairs can confirm that certain licences related to the export of specific defence technology to Malaysia have been revoked. This is solely due to Norway’s application of the export control regulations, and it is regrettable that this affects Malaysia”, a Ministry statement read.

The statement continued that “The duty of confidentiality under the Export Control Act is strict. The Ministry of Foreign Affairs is therefore unable to comment on individual cases. The security policy landscape in Europe and globally has changed significantly in recent years. The government has therefore, over time, worked to strengthen controls on defence technology developed in Norway. Exports of some of the most sensitive Norwegian-developed defence technologies will be limited to our allies and closest partners”.

It ended with “Norway greatly values its relationship with Malaysia and looks forward to continued cooperation and constructive dialogue with the Malaysian authorities,”

The country’s prime minister Anwar Ibrahim conveyed the country’s “vehement objection to Norway’s unilateral and unacceptable decision to revoke the export licence for the NSM system and its associated launcher systems, ostensibly to protect Norway’s security” in a telephone conversation with his Norwegian counterpart Jonas Gahr Store.

“Malaysia has honoured every obligation under this contract since 2018: scrupulously, faithfully and without equivocation. Norway, it appears, has not felt compelled to extend us the same courtesy and demonstration of good faith,” the prime minister’s social media post read.

“I made it plain that this decision will have grave consequences for Malaysia’s defence operational readiness and the LCS modernisation programme. It will undoubtedly carry broader ramifications for the regional balance.”

He added that “Signed contracts are solemn instruments. They are not confetti to be scattered in so capricious a manner. If European defence suppliers reserve the right to renege with impunity, their value as strategic partners flies out the window.”

Malaysia’s defence minister Khaled Nordin also confirmed that a committee was studying the matter, “looking for options that can be expedited”. On top of that, legal action and compensation are being considered in what is now becoming a diplomatic issue, with almost 95% of the contract’s US$145 million value already being paid to Kongsberg Defence & Aerospace.

He added that Malaysia will engage Norway through diplomatic channels to seek clarification and discuss appropriate measures over the issue, stating that he will be meeting his Norwegian counterpart Tore O. Sandvik at the IISS Shangri-La Dialogue in Singapore at the end of this month to seek clarification on the matter.–-shp/adj/dl (Pix:KONGSBERG)