THE Ministry of Defence has confirmed that Norwegian defence contractor Kongsberg Defence & Aerospace has requested negotiations with the government following the controversial cancellation of a missile supply contract worth hundreds of millions of ringgit.
However, Defence Minister Datuk Seri Mohamed Khaled Nordin stressed that any discussions with the company would not affect Malaysia's efforts to secure compensation for losses arising from the terminated agreement.
“We have not met the company officials. So, we don’t know what they want but the company has formally requested to negotiate with us,” Mohamed Khaled told reporters at Wisma Perkasa ATM today.
The dispute centres on a contract signed in April 2018 between Kongsberg Defence & Aerospace and the Royal Malaysian Navy (RMN) for the supply of Naval Strike Missile (NSM) systems intended for Malaysia's Littoral Combat Ship (LCS) programme.
The agreement was abruptly terminated last month after the Norwegian government revoked Malaysia's export licence for the NSM weapon system and its launchers, citing national security considerations.
The cancellation has triggered a major contractual dispute, with Malaysia seeking compensation reportedly exceeding RM1 billion.
According to available figures, Malaysia had already paid approximately 95 per cent of the contract value, amounting to RM583 million, before the agreement was cancelled.
The development has intensified scrutiny of the country's long-running Littoral Combat Ship programme, which has faced repeated delays, cost escalations and procurement challenges over the years.
While Kongsberg's request for negotiations may signal an effort to resolve the dispute outside a prolonged legal battle, Malaysian authorities have made clear that compensation claims will continue to be pursued concurrently.
The government has yet to disclose whether formal talks with the Norwegian company will proceed or what specific proposals may be presented during any future negotiations. - June 9, 2026
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