Malaysia weighs S. Korean missile systems after Norway deal collapse

· UPI

May 20 (Asia Today) -- Malaysia is considering South Korean missile systems as a replacement for canceled Norwegian naval missile deliveries after Oslo revoked an export license tied to Malaysia's next-generation littoral combat ship program.

Local media outlets including Malaysiakini reported Tuesday that Malaysia is seeking more than 1 billion ringgit ($235 million) in damages from Norwegian defense company Kongsberg Defence & Aerospace after the cancellation of a planned supply of Naval Strike Missiles, or NSM.

Defense Minister Mohamad Khaled Nordin said Monday that Malaysia had sent a formal damages claim notice to Kongsberg. He said the government had already paid 583 million ringgit ($137 million), equivalent to 95% of the missile contract's advance payment.

Malaysia's navy is now searching for an alternative anti-ship missile system to replace the NSM. Industry observers say LIG Nex1 and its Haeseong, or SSM-700K, ship-to-ship missile system are among the leading replacement candidates.

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Analysts said South Korea could emerge as a practical alternative partner given its growing defense technology capabilities and expanding geopolitical partnerships in Southeast Asia.

Malaysia signed the missile agreement with Norway in 2018. Under the deal, the Royal Malaysian Navy planned to deploy NSMs on its Littoral Combat Ship fleet as well as existing warships including KD Jebat and KD Lekiu.

The Norwegian government announced May 15 that it was revoking the missile export license.

Norway's Foreign Ministry said the move reflected stricter policies limiting exports of sensitive defense technologies to close allies and partner countries. Officials declined to provide detailed explanations about the Malaysia case, citing legal confidentiality obligations, but described the decision as a matter of export control compliance.

Malaysian Prime Minister Anwar Ibrahim reportedly told Norwegian Prime Minister Jonas Gahr Støre during a recent phone call that the decision was "unilateral and unacceptable."

Kuala Lumpur views the move as a breach of strategic trust and has signaled plans for a strong government response.

Malaysia's Defense Ministry established a special committee May 14 to review legal action against Kongsberg after receiving notice of the export cancellation.

Defense experts said the dispute reflects broader shifts in Europe's security environment following the war between Russia and Ukraine. They said NATO member Norway has tightened scrutiny over advanced weapons exports amid rising geopolitical tensions and concerns over technology leakage.

Some analysts also suggested Malaysia's foreign policy positions may have indirectly affected the decision. Malaysia has maintained a strongly pro-Palestinian and anti-Israel stance during the Gaza conflict and has also aligned diplomatically with Iran on some regional issues.

The dispute is not expected to delay Malaysia's Littoral Combat Ship delivery schedule. The first vessel is still expected to be delivered in December, followed by additional ships through 2029.

Malaysia's Defense Ministry has reportedly decided to exclude Norwegian systems from future defense procurement projects and has also advised some members of ASEAN to exercise caution in future defense dealings with Norway.

-- Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260520010005672