Malaysia seeks over $250 million from Norway after cancelled missile deal

Tuesday 19 May 2026 - 09:00

Malaysia announced that it is seeking more than 1 billion ringgit (approximately 252 million dollars) in compensation from Norway after Oslo cancelled export approvals for a naval missile system intended for Malaysian warships.

Malaysian Defense Minister Mohamad Khaled Nordin stated that the government had formally sent a notice demanding compensation for both direct and indirect losses linked to the cancelled agreement.

According to Malaysian authorities, the country had already paid around 126 million euros, representing approximately 95% of the contract value, for the missile systems. The deal involved the supply of Naval Strike Missile (NSM) systems produced by the Norwegian defense company Kongsberg.

Malaysia also plans to request additional damages to cover the cost of removing and replacing equipment already installed on combat ships designed specifically for the Norwegian missile system. The compensation request may also include expenses related to retraining military personnel.

The dispute began after Norway revoked certain export licenses tied to defense technologies destined for Malaysia. Norwegian authorities explained that the decision was linked to changes in export control regulations.

The move triggered strong criticism from Malaysian leaders. Prime Minister Anwar Ibrahim described the decision as “unilateral and unacceptable,” while Defense Minister Mohamad Khaled questioned the reliability of international defense partners, especially those connected to Western countries and NATO.

Analysts say the disagreement could affect future defense cooperation and trust between Malaysia and Western military suppliers. The case also highlights growing concerns among some countries regarding the stability of international defense contracts amid changing geopolitical and regulatory conditions.