The MTA Speaks| Prayer times| Weather Update| Gold Price
Follow Us: Facebook Instagram YouTube twitter

Malaysia Pursues RM1.06 Billion from Kongsberg After Missile Contract Cancellation

Malaysia Pursues RM1.06 Billion from Kongsberg After Missile Contract Cancellation

Post by : Shakul

Malaysia has filed a compensation claim of RM1.06 billion (€226.13 million) against the Norwegian defense firm Kongsberg Defence & Aerospace (KDA) after the cancellation of the Naval Strike Missile (NSM) procurement for the Royal Malaysian Navy's Littoral Combat Ship (LCS) program.

Defence Minister Datuk Seri Mohamed Khaled Nordin revealed that the claim represents direct financial losses and additional damages resulting from the unfulfilled missile system delivery.

Details of the Claim

The Defence Ministry specifies that the claim includes €129.86 million in direct losses, reflecting payments made under the contract, alongside €96.26 million in indirect losses due to extra costs incurred from the cancelled procurement.

Authorities noted the total financial implications may shift as negotiations progress and an alternative missile system is under evaluation.

Updates on KD Maharaja Lela

The Defence Minister also informed Parliament about the progress of KD Maharaja Lela, the first LCS being built for the Royal Malaysian Navy.

He confirmed that the sea trials on April 29 were executed as planned, with current testing focusing on the vessel's navigation systems, propulsion, and overall operational capabilities before final acceptance by the navy.

Next Steps for the Navy

Officials clarified that the ship will be officially handed over only after successfully completing the Sea Acceptance Trials and addressing all technical issues identified during testing, receiving final approval from the Royal Malaysian Navy.

Meanwhile, defense officials are evaluating potential alternative missile systems to substitute for the cancelled NSM program.

Enhancing Defence Procurement Procedures

The missile contract cancellation has brought renewed scrutiny on defense procurement methods and project management. Authorities say ongoing evaluations are aimed at ensuring better value and operational readiness in future military acquisitions, bolstering national security.

The Defence Ministry stated that additional costs related to the missile system replacement will be confirmed post-negotiation and technical evaluations.

Advancing Naval Defence Strategies

Malaysia remains committed to enhancing its naval capabilities as part of its long-term maritime security strategy. The government emphasizes that improving defense procurement, strengthening fleet readiness, and ensuring transparent project management are vital for safeguarding national waters and promoting regional security cooperation across Southeast Asia.

The results of the compensation claim and the resolution of a new missile system selection are anticipated to significantly influence the future trajectory of Malaysia's naval defense initiatives.

June 26, 2026 11:35 a.m. 1230
World News Defence Malaysia News Government

More Trending News

Featured Stories

Oil Prices Rise on Middle East Supply Concerns
Oct. 8, 2026 4:26 p.m.
Oil prices rose as Middle East supply concerns continued, while falling US crude inventories supported prices
Read More
Nepal Suspends Search for Flood Missing
Oct. 8, 2026 4:21 p.m.
Nepal suspends flood searches after 1,455 bodies were recovered, with 5,285 people still reported missing
Read More
Gold Prices Recover From Two-Month Low
Oct. 8, 2026 4:10 p.m.
Gold prices recovered from a two-month low as investors assessed Federal Reserve rate policy and market conditions
Read More
Dollar Holds Near 18-Month High as Fed Signals Caution
Oct. 8, 2026 3:22 p.m.
The dollar stayed near an 18-month high as markets assessed Federal Reserve policy and inflation concerns
Read More
South Korea Records Second-Highest Current Account Surplus
Oct. 8, 2026 11:41 a.m.
South Korea posted a record-level current account surplus in August, supported by strong exports and semiconductor demand
Read More
European Stocks Fall as Oil Prices and Yields Rise
Oct. 7, 2026 5:04 p.m.
European stocks slipped as rising oil prices and bond yields put pressure on investor sentiment and major market sectors
Read More
Two Missiles Target Aden International Airport
Oct. 7, 2026 4:23 p.m.
Two missiles targeted Aden International Airport in Yemen, with no casualties reported as fighting intensifies between Houthi and government forces
Read More
17 Killed in Zamfara Mining Site and Village Attack
Oct. 7, 2026 3:15 p.m.
Seventeen people were killed after armed gangs attacked a mining site and village in Zamfara State, northwest Nigeria
Read More
Iran Offers Seven-Day Plan to Reopen Strait of Hormuz
Sept. 26, 2026 4:27 p.m.
Iran says Hormuz can reopen within 7 days if the US accepts its proposed plan for ending hostilities and restoring shipping
Read More
Sponsored