Khaled: LCS project stays on track, Malaysia seeks replacement for scrapped Norwegian missiles

KUALA LUMPUR, July 2 — Malaysia’s Littoral Combat Ship (LCS) programme will remain on schedule despite Norway’s decision to revoke the export licence for the Naval Strike Missile (NSM) system, with the Royal Malaysian Navy (RMN) evaluating replacement missiles as the government seeks to recover RM571.9 million already paid under the affected procurement.

Defence Minister Datuk Seri Mohamed Khaled Nordin said the revocation would not affect the LCS delivery schedule, while the Defence Ministry assesses alternative missile systems for the fleet.

“The revocation of the export licence does not affect the planned delivery schedule of the LCS project.

“At the same time, the ministry, particularly through the RMN, is assessing and evaluating missile systems that have the potential to replace the NSM system,” he said in a written parliamentary reply.

Responding to Mohd Kurniawan Naim Moktar (BN-Kinabatangan), Khaled said the ministry viewed Norway’s decision seriously but stressed it would not affect the armed forces’ operational readiness, with the RMN continuing to rely on existing assets and weapon systems to safeguard the country’s maritime sovereignty.

He said the ministry was extending the service life of existing assets, diversifying defence procurement sources and strengthening defence diplomacy to ensure strategic supply chains remained intact.

The incident also underscored the risks of relying on a single supplier for critical defence capabilities, he said.

“In light of this, the ministry will expedite the implementation of the National Defence Industry Policy to strengthen the capabilities of the local defence industry.

“It will also prioritise government-to-government procurement for future strategic acquisitions to reduce the risk of unilateral disruptions or contract cancellations.”

In a separate written parliamentary reply, Khaled said the ministry was invoking contractual provisions to protect Malaysia’s interests following Norway’s decision.

“The ministry is invoking the contractual provisions available to safeguard the government’s interests, including submitting claims to recover payments and related damages.”

He also rejected claims that the government had prematurely paid the RM571.9 million contract value for the NSM system.

Responding to Hassan Abdul Karim (PH-Pasir Gudang), Khaled said the payment was not an advance payment but was made after the supplier completed the required work.

“As such, the payment was made in accordance with the terms of the contract and not as an advance payment without physical progress,” he said.

Khaled said all NSM systems had been fully manufactured, successfully passed RMN-required tests and were ready for delivery when the payment was made.

He also dismissed claims that the contract lacked safeguards to protect the government’s interests, saying it contained provisions allowing Putrajaya to act in the event of non-performance or a breach of contractual obligations.

“The allegation that the contract does not contain clauses protecting the government’s interests is inaccurate.”

Khaled added that the revocation of the export licence was beyond the control of both Malaysia and the supplier, but said the ministry would continue pursuing contractual remedies to recover the payment and related damages.