Markets 
Published on
Malaysia’s Prime Minister Anwar Ibrahim condemned Norway’s move on Thursday to revoke the export license for a naval missile system for his country’s navy, warning it could damage confidence in European defence suppliers.
Anwar said he raised Malaysia’s “vehement objection” during a phone call with Norwegian Prime Minister Jonas Gahr Støre, after Oslo blocked delivery of the Naval Strike Missile system and launcher components intended for Malaysia’s littoral combat ship programme.
“Malaysia has honoured every obligation under this contract since 2018: scrupulously, faithfully and without equivocation,” Anwar said in a statement.
“Norway, it appears, has not felt compelled to extend us the same courtesy and demonstration of good faith.”
The missile manufacturer, Kongsberg Defence & Aerospace AS, said export licensing decisions are handled entirely by Norwegian authorities, according to Malaysian national news agency Bernama.
The Norwegian government hasn’t made any public comment on the cancellation of the missile system or Anwar’s remarks.
Malaysian Defence Minister Mohamed Khaled Nordin told local media that the government had already paid nearly 95% of the contract value when Oslo blocked delivery in March.
The NSM anti-ship missile system was meant to equip Malaysia’s new class of littoral combat ships as part of its modernisation efforts.
Anwar said Oslo’s move would hurt Malaysia’s operational readiness and “undoubtedly carry broader ramifications for the regional balance.”
He questioned the reliability of European defence suppliers if signed agreements could be reversed unilaterally.
“Signed contracts are solemn instruments. They are not confetti to be scattered in so capricious a manner,” the Malaysian leader said.
“If European defence suppliers reserve the right to renege with impunity, their value as strategic partners flies out the window.”
Khaled said the government was now examining legal options and possible compensation claims over the cancelled delivery.
Additional sources • AP
Read the full article here
