Indonesian Political, Business & Finance News

RI's Neighbour 'Rages' Over Missile Issue

| Source: CNBC Translated from Indonesian | Trade
RI's Neighbour 'Rages' Over Missile Issue
Image: CNBC

The Malaysian government has fiercely criticised the Norwegian government’s unilateral decision to cancel the export permit for a naval missile system, even though contract payments have reached 95%. Oslo’s move is seen as detrimental to Malaysia’s ongoing modernisation of its naval combat fleet. Citing Arab News, Malaysian Prime Minister Anwar Ibrahim directly conveyed his objections via telephone to Norwegian Prime Minister Jonas Gahr Støre. He emphasised that Malaysia has fulfilled nearly all financial obligations under the agreement signed in 2018. “Malaysia has respected every obligation in this contract since 2018: meticulously, faithfully, and without hesitation. Norway, apparently, does not feel compelled to extend the same courtesy and demonstration of good faith to us,” he stated, as reported by Arab News on Thursday (14/5/2026). The Malaysian government explained that funds deposited with the supplier have nearly reached the final amount of the total contract value. However, as the procurement process neared its final stage in March, Norwegian authorities suddenly blocked the shipment of components and the missile launcher. “The signed contract is a sacred instrument. It is not confetti that can be scattered so recklessly. If European defence suppliers have the right to breach contracts without penalty, their value as strategic partners will evaporate,” he asserted. The Naval Strike Missile (NSM) anti-ship system, produced by Kongsberg Defence & Aerospace AS, was intended to equip Malaysia’s new class of littoral combat ships for its navy. Anwar assessed that the cancellation not only disrupts Malaysia’s military operational readiness but also affects the balance of security stability in the region. “This action will undoubtedly have broader consequences for regional balance,” Anwar continued. Currently, the Malaysian government is reviewing various legal options to respond to the missile delivery failure. Defence Minister Mohamed Khaled Nordin stated that the government is studying the possibility of filing a compensation claim for the substantial funds already paid by the country.

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