20/05/2026

WEDNESDAY | MAY 20, 2026

3

Bid to boost defence blocked by Norway

Navy challenged by unfair missile flip-flop

PETALING Norway’s unscrupulous move to revoke export licences for the Naval Strike Missile (NSM) system meant for Malaysia’s Littoral Combat Ship (LCS) programme has triggered fresh concerns over the navy’s future combat capability, while also revealing how access to advanced defence technology is increasingly shaped by geopolitical alignment. Defence analysts said the fallout goes far beyond the loss of a missile system, adding that the absence of the NSM could affect the LCS’s deterrence capability, delay full operational readiness, and force Malaysia into costly and time-consuming integration work should a replacement weapon system be chosen. The latest setback also adds pressure on the long-delayed LCS programme, signed in 2011, with the first vessel expected to be delivered later this year. The project cost has ballooned to RM11.2 billion from the original RM9 billion, despite the number of ships being reduced from six to five. National Defence University of Malaysia Maritime Technology Department lecturer Lieutenant Mohamad Azrin Abd Aziz said the timing of Norway’s move is significant, given that the NSM procurement agreement has been in place since 2018 before being halted this year. He said most NSM operators are countries aligned with Nato or the United States, whereas Malaysia has consistently maintained a neutral foreign policy stance. He also said recent tensions involving Iran and the United States, particularly around the Strait of Hormuz, may have influenced how supplier nations view Malaysia despite its non-aligned position. “Malaysia is not on their side. Malaysia is totally neutral. But from there, they may have taken the position that this technology must be kept within their own interest group or friendly countries,” said the retired navy veteran. Azrin said the NSM is regarded as highly sensitive due to its advanced operational capability, including its ability to strike naval and land targets using terrain-following flight profiles. He added that the setback revives a long-standing concern within the navy about operating sophisticated warships equipped with advanced sensors and combat systems without the primary weapon needed for long-range strike missions. He drew parallels with the navy’s Kedah-class new generation patrol vessels (NGPV), which entered service from 2006 with provisions for missile systems that were never installed. “I was part of the first crew on KD Terengganu , one of the navy’s NGPVs. The ship was sophisticated in many ways but because it was ‘fitted for but not with’, it was not supplied with missiles. “So, what happens? We lose firepower. We lose the ‘fang’.” JAYA:

He stressed that while the LCS would retain operational functions, its combat effectiveness would be lessened if deployed without its intended primary strike weapon. International Islamic University Malaysia defence systems and aerospace engineering expert Assoc Prof Dr Muhammad Hanafi Azami echoed the concern, saying the loss of the NSM risks creating a critical capability gap as the LCS was designed around the missile system as its main surface-to-surface strike weapon. He said the ships would need their intended long-range strike role unless Malaysia successfully integrates a replacement system. However, he added that replacing the NSM would be technologically complex and financially demanding. “Changing a missile is not like changing a car tyre. “It involves highly complex technology integration. The LCS combat management system has been configured to communicate with the NSM. “If Malaysia chooses other options, such as Atmaca (Turkiye’s domestically developed anti-ship missile) or Exocet MM40 Block 3 (France’s anti-ship missile), the software may need to be reworked, which will take time and incur high costs.” Hanafi said the first LCS could still be delivered on schedule, but it might not achieve full operational capability if the missile issue remains unresolved. “The navy is racing against time to ensure the LCS does not become an expensive patrol vessel without the proper destructive ‘fang’ it was meant to have.” The issue came to light on Thursday after Norway revoked export licences for the Kongsberg Defence and Aerospace-produced NSM system procured for Malaysia’s LCS programme. Prime Minister Datuk Seri Anwar Ibrahim criticised Norway’s move, saying it could undermine confidence in European defence suppliers. He said he has raised Malaysia’s “vehement objection” during a phone call with Norwegian Prime Minister Jonas Gahr Store after Oslo blocked the delivery of the naval missile system and launcher components intended for the LCS programme. “The security policy landscape in Europe and globally has changed significantly in recent years,” Norway’s Foreign Ministry said in an email. “The government has, over time, worked to strengthen controls on defence technology developed in Norway.” Defence Minister Datuk Seri Mohamed Khaled Nordin said Malaysia signed the contract in 2018 and paid nearly 95% of its value before the export licences were revoked in March. The Defence Ministry has since established three committees to examine contractual action, alternative systems as well as diplomatic options. – By Faiz Ruzman

Ű BY FAIZ RUZMAN newsdesk@thesundaily.com

o Development highlights need for coordinated industrial ecosystem, clearer policy direction

PETALING JAYA: Malaysia’s legitimate efforts to strengthen its long-term defence capabilities have come into focus following Norway’s decision to block the Naval Strike Missile (NSM) deal, which some defence observers have described as a flagrant breach of contract. The development highlights the need for a more coordinated industrial ecosystem, clearer policy direction and stronger local expertise in strategic weapons development. They said it also presents an opportunity for Malaysia to speed up efforts in building a more integrated and resilient defence industrial base capable of supporting advanced technologies in the future. National Defence University of Malaysia Maritime Technology Department lecturer Lieutenant Mohamad Azrin Abd Aziz said the issue goes beyond the absence of a local missile manufacturer, pointing instead to the importance of aligning national talent, research institutions and industry under a clearer long-term strategy. He said Malaysia’s defence industry has yet to reach the technological threshold required for guided missile development. “There is no Malaysian company that makes missiles. Rockets, maybe, but even so, it is still at the research stage. “But missiles are different from rockets because missiles are guided. LUMUT: The Defence Ministry has issued a notice of demand to a Norwegian manufacturer following the cancellation of an export licence for the Naval Strike Missile system. Defence Minister Datuk Seri Mohamed Khaled Nordin said the claim covers direct and indirect losses, totalling about RM1 billion. “The direct cost amounts to €126 million (RM583.47 million), which has already been paid, and we are also seeking substantial indirect costs, bringing the total claim to about RM1 billion,” he told reporters after a working visit to the Littoral Combat Ship (LCS) project at the Lumut Naval Shipyard at the navy base yesterday. Also present was navy chief Admiral Tan Sri Dr Zulhelmy Ithnain. Mohamed Khaled said the €126 million represents 95% of payments made under a RM634.7 million contract involving weapons systems for the LCS fleet as well as two other naval vessels, KD Jebat and KD Lekiu. He said Norway’s government has revoked the export licence without prior consultation, despite Malaysia meeting its contractual obligations. “We have paid 95% of the contract value. But at the final stage, based on the chronology of events, the Norwegian government cancelled the export licence for the system unilaterally.” He added that the decision was driven by a shift in Norway’s policy restricting exports of sensitive defence

practitioner Lieutenant Colonel Mohammad Juani Sujana said Malaysia should avoid reacting to the NSM setback by expecting a single local company to develop a complete missile system. He added that advanced weapons development requires the government to identify different domestic capabilities, integrate them systematically and build a functioning ecosystem rather than treating localisation as a one-company project. “For a system such as this, you need many types of expertise to be brought together to produce one technology.” Juani noted that Malaysian companies exist across parts of the defence supply chain, including trading, manufacturing, maintenance, repair and overhaul, engineering and research. However, he said those capabilities have never been integrated into a proven end-to-end missile development system. “There is no local industry yet with that full capability. If there are companies involved, many are more like traders or brokers. “You cannot simply appoint one company and ask it to develop the product. The government must orchestrate the effort.”

They have sensors in front. So, there is no Malaysian company or local industry yet that can build a missile at that level.” Azrin said the country’s main weakness is not a shortage of expertise but an absence of a clear national mission to channel universities, defence agencies, industry players and research funding towards a single strategic objective. “To focus on a guided missile programme, the amount of research and development required is huge. But there is no clear objective from the government. “Even though we have the Defence White Paper and other documents, we still do not have a direction in which we say we want to produce an industry capable of making missiles. “That objective, or government policy direction, has not yet supported this.” He said the Defence Ministry’s RM21.7 billion allocation under Budget 2026 should be viewed in perspective, arguing that the figure remains insufficient for building a sustainable defence industrial base despite being the government’s third-largest allocation after education and health. Meanwhile, retired air force veteran and defence industry

Ministry claims RM1b from Norwegian firm

Mohamed Khaled said the move has raised concerns over the reliability of international defence commitments and should serve as a lesson for Malaysia and Asean partners. – BERNAMAPIC

cancelled unilaterally, confidence in the entire system will begin to erode. We hope Asean countries and nations that are not close allies of Norway will learn from Malaysia’s experience and avoid purchasing or dealing with Norway.” He added that the ministry will exercise greater caution in future procurement, including avoiding sourcing from countries with similar risks. – Bernama

technology to allies and close strategic partners. “Meaning that the export is limited to members of Nato and countries regarded by Norway as strategic partners.” Mohamed Khaled said the move has raised concerns over the reliability of international defence commitments and should serve as a lesson for Malaysia and Asean partners. “When commitments can be