The Defence Ministry is weighing legal action after Norway moved to block the export of naval strike missiles (NSM) to Malaysia.
The decision could leave the Royal Malaysian Navy’s long-delayed littoral combat ship (LCS) programme without an anti-surface missile capability, at least until a replacement system is secured.
According to the New Straits Times today, Defence Minister Khaled Nordin said the government was considering legal action because it had already paid nearly 95 percent of the contract value, amounting to over RM500 million.
“A special committee at the ministry level has been established to detail the claims, which are not limited to refunding payments already made, but also include damages arising from breach of contract.
“We are making the necessary calculations. We will not only seek recovery of funds paid, but also compensation for the consequences of the breach that has affected the government.
“It is appropriate for us to claim all damages arising from the cancellation,” Khaled reportedly told a press conference.
LCS programme will go on
Khaled also assured that the LCS programme would continue on schedule despite the setback, which he described as affecting only the missile armament and not the wider project.
“Although the ships can be completed, they will not have a surface-to-surface missile system. The LCS programme will proceed.
“The issue is only with the missile system, as the missiles have yet to be delivered. Some modifications will be required, but I do not believe this will significantly affect the project,” NST reported him saying.
Khaled said he would visit the Lumut Naval Shipyard next Tuesday to obtain further details on the project’s status and technical developments.
Last week, the Malaysian Defence portal claimed that Norway had banned the export of NSMs to Malaysia.
In response, Khaled said that Malaysia is using diplomatic channels to obtain clarification from Norway and seek the next steps to protect national interests.
Each of the navy’s five Maharaja Lela-class LCS was supposed to be equipped with eight NSM as its main offensive armament. They are primarily used to attack naval targets from up to 300km or more, but can also be used against land targets.
Apart from the NSM, the Maharaja Lela-class is meant to be equipped with Mica-M missiles for short-range air defence, two triple-tube torpedo launchers for anti-submarine warfare, a 57mm cannon that can be used against both surface and aerial targets up to 17km away, and two 30mm autocannons primarily used to fend off fast attack craft at close range.
The lead ship KD Maharaja Lela began sea trials in January and is scheduled for delivery in December.
However, the export ban means Norwegian defence firm Kongsberg must cancel the contract signed in 1998, as it cannot legally deliver the missiles to Malaysia to equip the ships.
Additionally, existing equipment on the LCS, such as ramps for the NSM launchers and associated wiring, may need to be removed, and the ship’s combat management system will need to be modified once the government chooses to adopt a different missile.
This places additional pressure on a project that has been delayed for years and is urgently needed by the navy to renew its ageing fleet.
The export ban not only affects the LCS programme but also orders made last year to replace Exocet missiles installed on the Lekiu-class frigates KD Jebat and KD Lekiu.
PM expresses objection
This morning, Prime Minister Anwar Ibrahim said he had conveyed Malaysia’s vehement objection over the “unilateral and unacceptable decision” to revoke the export licence for NSM delivery to Malaysia, together with its associated launcher systems, in a telephone conversation with Norwegian Prime Minister Jonas Gahr Støre.
He stressed that Malaysia had fully complied with the contract since 2018 and had fulfilled all its obligations.
In contrast, he lamented that Norway had failed to uphold its side of the agreement and did not demonstrate good faith.
“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.
“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,” Anwar said in a Facebook posting. - Mkini
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