Malaysia ordered Naval Strike Missiles (NSM) from Norwegian firm Kongsberg Defence & Aerospace in April 2018 to equip its Royal Malaysian Navy’s littoral combat ships (LCS) and existing vessels KD Jebat and KD Lekiu [1, 2, 3, 4, 5, 6, 7, 8]. The contract was valued at approximately €124 million (about RM571.9 million) [1, 3, 5, 7, 9].
The missile delivery was scheduled for March 2026 but was halted days before shipment when the Norwegian government revoked the export licence [1, 10, 2, 4, 7, 9, 8]. Malaysia’s Defence Minister Mohamed Khaled Nordin said, "Several days before delivery, without any warning, the Norwegian government informed us that it would not approve the export licence for the products. After eight years, this is shocking and has affected us" [1]. Prime Minister Anwar Ibrahim called the revocation "unilateral and unacceptable," adding "Signed contracts are solemn instruments. They are not confetti to be scattered in so capricious a manner" [3].
Malaysia has already paid nearly 95% of the contract’s value, totaling over RM500 million, and is pursuing legal recourse including compensation claims [4, 5, 7, 9]. A special committee at the Defence Ministry was formed to assess claims, with Khaled stating it includes "not only the refund of the original payment but also compensation arising from the breach of contract" [5].
The Norwegian Foreign Ministry cited stricter export controls limiting sales of sensitive defence technology to Norway’s allies and partners for the licence revocation. A ministry statement said, "This is solely due to Norway’s application of the export control regulations, and it is regrettable that this affects Malaysia" [9, 8]. Kongsberg said licensing decisions are made solely by Norwegian authorities and that the company "fully comply[s] with all applicable regulations" [1, 7].
Malaysia’s LCS shipbuilding programme, launched in 2011, has faced delays. The first LCS vessel, KD Maharajalela, is due for delivery in December 2026 but will initially lack a surface-to-surface missile system due to the NSM issue [5, 7, 8]. Malaysian officials are evaluating alternatives, with candidates including the French Exocet MM40 Block 3 and Turkish Roketsan Atmaca missiles [6, 11]. Former defence officials suggested Malaysia may pursue legal action, issue a final ultimatum to Kongsberg, or consider non-Western options such as from Iran or Russia [6].
Malaysia is also working diplomatic channels to resolve the dispute, with planned meetings between the two countries’ Defence Ministers scheduled at the end of May 2026 in Singapore [1, 10, 9].
