Malaysia tells Norway to hasten scrapped missile deal refund

Malaysia has urged Norway to help expedite a refund for the cancelled missile procurement deal, with Defence Minister Mohamed Khaled Nordin insisting that Oslo cannot absolve itself of responsibility.Khaled said he had recently met Norway’s defence minister and conveyed Malaysia’s position that the Norwegian government’s refusal to approve an export licence was the cause of the issue.“The source of everything is Norway’s decision not to approve the export licence to Malaysia. Therefore, Norway cannot wash its hands of this matter because its decision caused the problem,” he told a press conference after a meeting in Johor on Tuesday.The issue stems from Norway’s refusal to approve an export licence for the Naval Strike Missile system that Malaysia bought for its littoral combat ships.Khaled said he had told his Norwegian counterpart that if Norway was sincere about maintaining good bilateral relations with Malaysia, it should help facilitate the refund process.He suggested that the Norwegian government consider advancing the repayment before seeking reimbursement from the company involved.“The company that cannot fulfil the contract is a Norwegian company. As a government, Norway can negotiate with the company rather than force Malaysia to wait indefinitely,” he added.According to Khaled, the funds are needed to secure an alternative missile system for the Royal Malaysian Navy.Norwegian officials had described the dispute as a matter between Malaysia and the company concerned.Khaled stressed that the issue extended beyond any financial loss incurred by Malaysia.He said it raised broader questions about whether defence contracts and international agreements could still be relied upon if governments intervened after deals had been signed and payments made.Further Reading“If contracts and agreements are not respected, it will affect confidence in the international system and the rule of law,” he said.Khaled estimated Malaysia’s direct losses at more than 600 million ringgit (US$151 million), with indirect costs pushing the overall impact beyond 1 billion ringgit.He said additional expenses would arise from sourcing a replacement missile system, integrating it with the navy’s existing systems and conducting fresh training programmes.“Who is going to bear those costs when the failure to supply the missiles was not caused by Malaysia?” he said.He added that the defence ministry is evaluating alternatives from several countries, including Italy, France, Turkey, South Korea, the United States and Japan.However, he said Malaysia would prioritise missile systems that are already in production, as a new order could take between four and six years to be delivered.He added that the government had accepted Norway’s apology but would continue pursuing compensation and other claims arising from the failed procurement.“We can accept the apology, but our claims remain. If Norway truly values its friendship with Malaysia, then it should help resolve this issue,” he said.This story was first published by The Star