Overview
- Malaysia sent a formal notice of demand on Tuesday, May 19, seeking more than RM1 billion (about US$252 million) from Kongsberg for direct and indirect losses after the missile delivery was blocked.
- Norway revoked export licences for the Naval Strike Missile earlier in May, saying new rules limit transfers of its most sensitive defence technologies to allies and closest partners.
- Kuala Lumpur says it paid roughly €126 million, about 95% of the 2018 contract price for NSM missiles meant for six littoral combat ships and other vessels.
- Analysts report that US‑made components inside the NSM, notably a guidance gyroscope, may have brought the system under US re‑export controls, a possible but unconfirmed reason for the licence revocation.
- The cancellation forces Malaysia to redesign ship fittings, retrain crews, hunt for replacements such as South Korean systems, rule out future Norwegian buys and raises broader doubts about reliance on multinational weapons supply chains.