Did US restrictions sink Malaysia’s US$147 million Norway missile deal?
Analysts say US-controlled parts may have been a factor in Norway’s revoked export licences, underscoring risks for Asian defence buyers
Analysts suspect a gyroscope used in the guidance system of Kongsberg Defence & Aerospace’s Naval Strike Missile and other US-made components are the reason Malaysia’s navy will not be receiving the weapons it contracted for – and paid nearly €126 million (US$146.6 million) towards – under a 2018 deal.
The US embassy in Malaysia has denied any involvement on the part of Washington in Norway’s decision.
Signed contracts are solemn instruments, they are not confetti
“Signed contracts are solemn instruments,” Anwar declared. “They are not confetti to be scattered in so capricious a manner.” He warned that if European defence suppliers felt entitled to renege “with impunity”, then they had no value as strategic partners.
On Tuesday, Defence Minister Mohamed Khaled Nordin went further, announcing Malaysia would be pursuing a compensation claim of more than US$251 million – covering not just the sums already paid but the downstream costs of reopening ship installations, retraining crews and integrating an entirely new missile system into vessels designed from the keel up to carry the Norwegian one.