Malaysia seeks clarification from Norway after export control halts missile supply
Finance

Malaysia seeks clarification from Norway after export control halts missile supply

Published by Global Banking & Finance Review

Posted on May 7, 2026

2 min read

· Last updated: May 7, 2026

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Malaysia to Discuss Norway’s Decision Halting Missile Supply for Naval Ships

Impact of Norway’s Export Decision on Malaysia’s Naval Projects

Background of the Missile Supply Issue

KUALA LUMPUR, May 7 (Reuters) - 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.

Procurement Contract Details

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).  

Norwegian Firm’s Response

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 Embassy in Kuala Lumpur directed queries to its Foreign Affairs Ministry.

Challenges Facing Malaysia’s Littoral Combat Ship Project

Project History and Cost Overruns

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 remained undelivered. 

Project Relaunch and Delays

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.

Government Response and Next Steps

Recent Reports and Official Statements

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.

Ministry’s Position and Future Actions

"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. 

Additional Information

($1 = 3.9070 ringgit)

(Reporting by Ashley TangEditing by Alexandra Hudson)

Key Takeaways

  • Malaysia holds a 2018 procurement contract with Kongsberg for NSM missiles; deliveries were halted due to a Norwegian policy change (marketscreener.com).
  • The LCS project, launched in 2011 and relaunched in 2023 with five vessels instead of six, has faced severe cost overruns and delays (marketscreener.com).
  • Malaysia will elevate the issue to Cabinet and pursue government‑to‑government diplomatic engagement to safeguard strategic defence interests (bernama.com)

References

Frequently Asked Questions

Why has Norway halted missile supply to Malaysia?
Norway changed its position on defence export approvals, resulting in halted missile supply meant for Malaysia's naval ships.
Which company was supplying missiles to Malaysia?
Kongsberg Defence & Aerospace AS, a Norwegian defence company, was contracted to supply Naval Strike Missiles.
What is the status of Malaysia's Littoral Combat Ship project?
The project faced delays due to mismanagement and late equipment deliveries. Only five ships will now be built instead of six, with the first ship's delivery postponed to December.
How is Malaysia responding to the missile supply halt?
Malaysia's Defence Ministry will discuss and seek clarification from Norway to safeguard national interests.

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