UPDATE 2-Malaysia seeks clarification from Norway after export control halts missile supply

The ministry said Norway looked forward to constructive dialogue with Malaysian authorities. Malaysia's LCS project, awarded in 2011 for six vessels ⁠at an initial cost of 6 billion ringgit, has been dogged by serious mismanagement problems where the cost of it has ​ballooned over the years while the ships remain undelivered.

Malaysia's Defence Ministry said ​it will discuss with Norway a ‌shift ​in Oslo's position regarding defence export approvals that has halted the supply of missiles intended for its naval combat ships, in the latest blow to the ‌project.

In a statement on Thursday, Defence Minister Mohamed Khaled Nordin confirmed that the ministry holds a procurement contract with Norwegian defence firm Kongsberg Defence & Aerospace AS for the supply of Naval Strike Missile (NSM) guided missiles which are used ‌to equip the country's Littoral Combat Ships (LCS). Kongsberg Defence & Aerospace AS told Reuters export licensing decisions are ‌handled by the Norwegian authorities and that it fully complies with all applicable regulations, adding that it remains committed to its long-term partnerships and activities in the region.

The Norwegian Foreign Affairs Ministry said they have decided to revoke certain export licenses related to specific technologies, ⁠citing ​the country's stricter controls over ⁠them. The ministry said Norway looked forward to constructive dialogue with Malaysian authorities.

Malaysia's LCS project, awarded in 2011 for six vessels ⁠at an initial cost of 6 billion ringgit, has been dogged by serious mismanagement problems where the cost of it has ​ballooned over the years while the ships remain undelivered. The project was relaunched in 2023 following a ⁠government review, with the decision made to acquire only five ships instead of six. The first vessel, which was originally scheduled for delivery ⁠in ​August this year, was pushed back to December due to late equipment deliveries from manufacturers and ongoing rework issues.

The statement came in response to a report on a Malaysian defence news portal that Norway ⁠had banned the deliveries of the missiles to Malaysia just days before the scheduled date. "The Ministry takes note ⁠of the change in ⁠the Norwegian government's position regarding defence export approvals, which has affected the implementation of the said contract," Mohamed Khaled said.

Mohamed Khaled added that they will seek further clarification and ‌discuss appropriate ‌steps to safeguard the nation's interests. ($1 = 3.9070 ringgit)