KUALA LUMPUR, June 9 — Norwegian defence firm Kongsberg Defence & Aerospace is seeking to negotiate with Malaysia after the latter pressed Norway to expedite compensation for a scrapped missile procurement deal.
Defence Minister Datuk Seri Mohamed Khaled Nordin confirmed the matter but stressed that Malaysia will continue pursuing the compensation concurrently despite any possible negotiations with the company.
“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, here, today.
Kongsberg Defence & Aerospace signed a contract with the Royal Malaysian Navy (RMN) in April 2018 to supply naval strike missiles (NSM) for Malaysia’s upcoming littoral combat ships (LCS).
However, the company abruptly cancelled the RM571.9 million deal last month after the Norwegian government revoked Malaysia’s export licence for the NSM system and its launchers, citing national security concerns.
Malaysia has reportedly paid 95 per cent of the contract value, amounting to RM583 million, and is seeking compensation worth more than RM1 billion.
