Khaled warns against delay tactics as missile supplier seeks talks

PETALING JAYA: Defence minister Khaled Nordin says the Norwegian company which cancelled a contract to supply its naval strike missile (NSM) system to the navy has called for talks over the RM1.06 billion compensation claim by Putrajaya.

However, Khaled said the ministry will not let Kongsberg Defence & Aerospace use the discussions as a tactic to delay the government’s claim, Bernama reported.

“The company has requested to meet us. While we are open to discussions, we do not want these meetings to become a tactic to delay the compensation process.

“We remain vigilant against any such tactics to ensure we do not fall into that trap,” he was quoted as saying.

According to Kongsberg’s website, the NSM procurement contract was signed between the navy and the company in April 2018, valued at 124 million euros (RM571.9 million), to equip six littoral combat ships (LCS).

In May, the Norwegian government revoked the export licence for the NSM system and its associated launcher systems after stating that exports of its defence technology would be limited to its “allies and closest partners”.

Malaysia is seeking more than RM1 billion in damages from Kongsberg, which include indirect costs such as the removal of missile mounting systems already installed on the navy’s vessels, as well as the integration of replacement systems supplied by other vendors.

A team has been established to identify a replacement missile system, with Turkey, South Korea and two European countries among four shortlisted potential suppliers.