Norway defends its decision to cancel missile system sale to Malaysia

KUALA LUMPUR: Norway's foreign ministry affirmed on Friday that it has revoked export licenses tied to a naval missile system for Malaysia, saying sales of its most sensitive defense technologies are now restricted to allies and closest partners.

The move blocked delivery of the Naval Strike Missile system and launcher components intended for Malaysia's littoral combat ship program, prompting sharp protests from Kuala Lumpur. Malaysian Prime Minister Anwar Ibrahim warned it could damage confidence in European defense suppliers.

Norway's foreign ministry said in reply to Associated Press queries that the government has strengthened oversight on defense technology in response to major shifts in the security landscape in Europe and globally in recent years.

"Exports of some of the most sensitive Norwegian-developed defense technologies will be limited to our allies and closest partners," it said. "It is regrettable that this affects Malaysia."

Malaysia inked a deal for the NSM anti-ship missile system in 2018 with Norway's Kongsberg Defense & Aerospace AS. The missiles were intended to arm Malaysia's new class of littoral combat ships under a broader naval modernization program.

Anwar said on Thursday that he raised Malaysia's strong protest during a phone call with Norwegian Prime Minister Jonas Gahr Store. He said Oslo's move would hurt Malaysia's operational readiness and cast doubt on the reliability of European defense partners if signed agreements could be reversed unilaterally.

Contracts are "not confetti to be scattered in so capricious a manner," Anwar said. "If European defense suppliers reserve the right to renege with impunity, their value as strategic partners flies out the window."

The Norway foreign ministry said that Store had explained Norway's decision to Anwar during their call. Despite the curbs, it said Norway "greatly values its relationship with Malaysia" and looked forward to continued cooperation and constructive dialogue with Malaysian authorities.

Malaysia has already paid 95% of the contract value and is now examining legal options and possible compensation claims over the canceled delivery.