Khaled: Malaysia seeks RM1.06b from Norwegian defence firm over scrapped missile deal

PETALING JAYA, June 26 — Malaysia is seeking €226.13 million (RM1.06 billion) in compensation from Norway’s Kongsberg Defence & Aerospace AS (KDA) after the cancellation of a deal to procure Naval Strike Missiles (NSM) for the Royal Malaysian Navy’s littoral combat ships, Defence Minister Datuk Seri Mohamed Khaled Nordin said today.

The claim comprises €129.86 million in direct losses, covering payments already made by the government, and €96.26 million in indirect losses for additional costs and consequential damages arising from the failure to deliver the missile system.

“The actual additional costs, or ‘overrun costs’, to be borne by the government have yet to be finalised as they depend on the settlement method agreed upon and the replacement weapons system currently under evaluation,” Mohamed Khaled said in a written parliamentary reply.

He was responding to a question from Datuk Seri Ikmal Hisham Abdul Aziz (PN-Tanah Merah), who asked about the status of the Sea Trial for KD Maharaja Lela and the potential cost overruns stemming from the cancellation of the NSM contract.

On KD Maharaja Lela, Mohamed Khaled said the vessel is undergoing a series of phased tests and evaluations to verify the performance of its platform, navigation, propulsion and other critical systems before its formal acceptance by the Royal Malaysian Navy.

He said the Sea Trial conducted by LUNAS on April 29 proceeded according to schedule and had shown “positive progress”.

“The vessel’s formal acceptance remains subject to the successful completion of the Sea Acceptance Trial, the rectification of any technical findings and final verification by the Royal Malaysian Navy,” he said.