Malaysia demands $252 million from Norway over axed defense deal

Malaysia tells Norway to pay $252 million for scrapping defense deal

Mohan Sinha
21 May 2026, 11:21 GMT+10

Malaysia’s defense minister said that the country has asked Norway to pay more than 1 billion ringgit (about US$252 million) in compensation for canceling export approvals for a naval missile system on warships.
Defense Minister Mohamad Khaled Nordin said Malaysia will seek compensation for both direct and indirect losses.
Khaled said Norway’s action raises concerns about the reliability of international defense partners, especially those from Western or NATO countries.

KUALA LUMPUR, Malaysia: Malaysia's defense minister said on May 19 that the country has sent a notice to Norway asking for more than 1 billion ringgit (about US$252 million) in compensation. This came after Norway suddenly canceled export approvals for a naval missile system on Malaysian warships.

Norway said it had withdrawn some export licenses due to changes in its export rules. The decision surprised Malaysia and caused a diplomatic dispute. Prime Minister Anwar Ibrahim called the move "one-sided and unacceptable."

Defense Minister Mohamad Khaled Nordin said Malaysia will seek compensation for both direct and indirect losses. He added that Malaysia had already paid about 126 million euros, around 95 percent of the contract, for the missile systems.

Malaysia also plans to claim extra damages for the cost of removing and replacing equipment on ships designed for the missiles, as well as retraining personnel.

Khaled said Norway's action raises concerns about the reliability of international defense partners, especially those from Western or NATO countries. He said the issue is not just about defense purchases, but also about a wider loss of trust between countries.

Norway's foreign ministry has not yet responded to Malaysia's request. Meanwhile, Norwegian company Kongsberg had earlier signed a 124 million euro deal in 2018 to supply missiles to Malaysia's navy, with another similar deal also in place.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Middle East Star.

More Information

International Business

Section

Report says U.S. investigating Chinese shipping container makers

WASHINGTON, D.C.: The United States is investigating whether Chinese companies deliberately reduced global production of shipping containers...

StanChart plans 7,000 job cuts, cites AI and automation drive

HONG KONG: Standard Chartered said on May 19 that it will eliminate more than 7,000 jobs over the next four years as the bank increases...

Global oil stockpiles shrinking rapidly, IEA chief says

PARIS, France: The head of the International Energy Agency warned on May 18 that commercial oil inventories are being depleted quickly...

AI mission will accelerate UP data center cluster: CM Yogi during review meeting

Lucknow (Uttar Pradesh) [India], May 21 (ANI): Uttar Pradesh Chief Minister Yogi Adityanath has held a high-level review of three important...

RBI announces USD 5 billion swap auction to inject long-term liquidity into banking system

New Delhi [India], May 20 (ANI): The Reserve Bank of India (RBI) on Wednesday announced a USD 5 billion dollar-rupee swap auction aimed...

UAE, France deepen strategic economic partnership: Business France CEO

DUBAI, 20 May, 2026 (WAM) -- Louis Margueritte, Chief Executive Officer of Business France, the French national agency for international...

International

Section

Malaysia tells Norway to pay $252 million for scrapping defense deal

Watch latest videos

News RELEASES

International Business

Report says U.S. investigating Chinese shipping container makers

StanChart plans 7,000 job cuts, cites AI and automation drive

Global oil stockpiles shrinking rapidly, IEA chief says

AI mission will accelerate UP data center cluster: CM Yogi during review meeting

RBI announces USD 5 billion swap auction to inject long-term liquidity into banking system

UAE, France deepen strategic economic partnership: Business France CEO

International

Malaysia tells Norway to pay $252 million for scrapping defense deal

Trump says US may need to attack Iran again

Mother passes away 10 days after finding son died in Venezuelan jail

Drivers in Ireland face huge fines for unpaid motorway tolls

Cruise ship, which reported Hantavirus aboard, ends trip at Rotterdam

Corporate costs from Iran conflict top $25 billion worldwide

Movie Review

Network (4K UHD) [Blu-Ray]