SINGAPORE: Malaysia criticised the “deafening silence” from major powers on Sunday (May 31) over the collapse of its deal with Norway for a naval missile system, saying it “sends a dangerous message” about the integrity of international contracts.
The two countries have fallen into a diplomatic dispute this month since Norway revoked export approvals for certain technologies.
Oslo says the move has not intentionally targeted Malaysia, but Kuala Lumpur is still seeking more than US$251 million in compensation from the Norwegian company involved in the deal.
Malaysian Defence Minister Mohamed Khaled Nordin condemned the lack of strong reaction from other countries to “Norway’s unilateral decision” at a major defence forum in Singapore.
“No serious concern was raised about the integrity of contracts or accountability. This deafening silence sends a dangerous message that some countries are simply above scrutiny,” he told the Shangri-La Dialogue.
Mohamed Khaled criticised what he called double standards in the application of international law among “developing nations” and “powerful countries or their allies”, adding that Malaysia was now talking with “real partners” to buy the missile system.
Norway has said that the revocations were “solely due to Norway’s application of the export control regulations” and that it is “regrettable” that they have affected Malaysia.
Its foreign ministry has said it cannot comment on individual contracts as they were covered under strict confidentiality clauses.
Mohamed Khaled said this month that the Malaysian government had sent a notice to the company involved, Kongsberg Defence & Aerospace, demanding compensation for both “direct and indirect costs”.
Prime Minister Anwar Ibrahim has also raised his “vehement objection” to the “unacceptable” decision in a phone call with his Norwegian counterpart Jonas Gahr Store.
Anwar has warned that the decision “will have grave consequences for Malaysia’s defence operational readiness and the Littoral Combat Ship (LCS) modernisation programme”.
The LCS programme, first approved in Malaysia in 2011 with an initial contract worth RM6 billion (US$1.5 billion), was for six vessels.
The deal, which had been plagued by allegations of mismanagement and rising costs, was relaunched in 2023 following a government review, with the number of ships reduced to five.
Delivery of the first vessel, expected in August, has been pushed back to December due to delays in equipment deliveries and ongoing rework, according to officials cited in local media reports.