Lumut: The Ministry of Defence (MINDEF) has issued a notice of demand to a Norwegian manufacturer following the cancellation of an export licence for the Naval Strike Missile (NSM) anti-ship and land-attack missile system. Minister Datuk Seri Mohamed Khaled Nordin stated that the notice, which seeks compensation for both direct and indirect losses, was sent to the company today.

According to BERNAMA News Agency, the minister revealed that the total claim amounts to approximately RM1 billion, comprising EUR126 million (RM583.47 million) in direct costs already paid and substantial indirect costs. These claims are linked to payments made under a RM634.7 million contract involving weapons systems for the littoral combat ship (LCS) fleet and two other naval vessels, KD Jebat and KD Lekiu.

Mohamed Khaled explained that the Norwegian government had unilaterally revoked the export licence without engaging in prior discussions with Malaysia, despite the latter having met all contractual obligations. He noted that Norway's new policy restricts the export of sensitive defence technology to NATO members and strategic partners, leading to the cancellation at the final stage.

The minister emphasized that this incident has triggered a crisis of confidence regarding international commitments and should serve as a lesson for Malaysia and its ASEAN partners. He urged caution in future dealings with Norway and advised against sourcing future defence purchases, including ammunition, from countries that might take similar unilateral actions.