Malaysia’s defence minister said the government is considering spending more than 1 billion ringgit ($245 million) on a new naval strike missile system after a deal with Norway collapsed earlier this year, the Star reported. The previous deal - signed in 2011 for $2.8 billion - fell through after Oslo blocked delivery of the naval missile system and launcher components to Malaysia following a change in Norway’s export control regulations, which limits some sales to allies and closest partners. Malaysian Prime Minister Anwar Ibrahim slammed the move, saying it could damage confidence in European defence suppliers.
Malaysia has since instructed the military to stop sourcing ammunition and other defence assets from Norway, and issued a notice of demand to the manufacturer seeking more than 1 billion ringgit in losses. Defence Minister Mohamed Khaled Nordin said Malaysia couldn’t afford to wait for compensation before deciding on a replacement, the Star reported. The government may have to consider a new budget allocation to buy a new missile system to replace the one from Norway, he was cited as saying.
Khaled said Malaysia was currently considering procurement from three countries, without naming them, the report said. The minister said in May that US officials offered to sell Malaysia a replacement system for its littoral combat ship program.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing