Malaysia Files $250 Million Claim in Norway Missile Dispute

Malaysia's Defense Minister Mohamed Khaled Nordin delivers his remarks during the opening session of the Association of Southeast Asian Nations (ASEAN) Defense Ministers’ Meeting in Kuala Lumpur, Malaysia, Friday, Oct. 31, 2025. Dita Alangkara/Pool via REUTERS/File Photo

KUALA LUMPUR, May 21, 2026 — Malaysia is seeking more than $250 million in compensation from Norway after Oslo revoked export approvals for a Norwegian missile system intended for Malaysian naval vessels, Malaysian officials said.

Defence Minister Mohamed Khaled Nordin said Malaysia had formally notified Norway of its compensation claim, which covers both direct and indirect losses linked to the cancellation of the missile deliveries.

The dispute involves the Naval Strike Missile system manufactured by Norwegian defence company Kongsberg Defence & Aerospace. The company signed a 124 million euro contract with the Royal Malaysian Navy in 2018 to supply missiles for six littoral combat ships.

According to Malaysian authorities, about 95% of the contract value had already been paid before Norway withdrew the export licences.

Malaysia is also seeking compensation for costs related to dismantling equipment already installed on naval vessels, as well as expenses tied to retraining military personnel.

Norway said the export approvals were revoked following changes to the country’s export control regulations.

Malaysian Prime Minister Anwar Ibrahim previously described the move as “unilateral and unacceptable,” warning that the decision could undermine confidence in Western and NATO-linked defence partners.

Norway’s foreign ministry declined to comment directly on the dispute but said it looked forward to continued dialogue and cooperation with Malaysia.

The case marks a rare public dispute between the two countries over defence procurement and could raise broader concerns among buyers regarding export reliability and long-term military contracts.