Malaysia to seek US$251 million compensation from Norway over cancelled missile deal

Malaysia is pursuing a compensation claim exceeding US$251 million against Norway after Kongsberg Defence & Aerospace cancelled a missile order. The 2018 deal, valued at nearly €126 million (US$146.6 million), was for the Naval Strike Missile to equip Malaysia's navy. Analysts suspect the cancellation was forced by the United States due to a gyroscope in the missile's guidance system and other US-made components, giving Washington a hidden technological veto. Malaysian Prime Minister Anwar Ibrahim stated that signed contracts are not confetti to be scattered capriciously. Defence Minister Mohamed Khaled Nordin announced the claim covers sums paid, downstream costs of reopening ship installations, retraining crews, and integrating a new missile system. He warned regional buyers to think carefully before purchasing Norwegian weapons.