What happened
Malaysia is looking at spending north of 1 billion ringgit to equip its navy with a new strike missile setup after its earlier arrangement with Norway collapsed this year, the Star reported. That original contract, signed in 2011 and valued at $2.8 billion, was derailed when Norway blocked delivery of the missile system and launcher components following changes to its export control regime.
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Why Norway blocked delivery
Norway's updated export rules restrict certain defense sales to allies and closest partners, which led to the stoppage. Prime Minister Anwar Ibrahim criticized the decision, warning it could undermine trust in European defense suppliers.
What Malaysia is doing next
Malaysia has directed its armed forces to cease purchasing ammunition and additional defense materiel from Norway, and it has issued the manufacturer a demand letter seeking damages exceeding 1 billion ringgit. Khaled said Malaysia cannot afford to wait for compensation before choosing a replacement, and that the government may need to set aside a new budget to buy a different missile system. He added that Malaysia is evaluating offers from three countries, though he did not identify them. The minister also said in May that U.S. officials had proposed selling Malaysia a substitute system tied to its littoral combat ship program.
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