Kuala lumpur: The government is taking all necessary measures to resolve compensation claims arising from the cancellation of a contract to procure the Naval Strike Missile (NSM) system from Norway's Kongsberg Defence and Aerospace AS (KDA). Defence Minister Datuk Seri Mohamed Khaled Nordin said the Defence Ministry and the Foreign Ministry had formally notified the Norwegian government of Malaysia's position and intended course of action. He said the move was aimed at ensuring Norway could facilitate and mediate any negotiations or subsequent actions involving the defence contractor.

According to BERNAMA News Agency, the Defence Minister emphasized the commitment to resolving the matter by issuing the necessary notices from the outset. He mentioned that the Foreign Ministry has written to the Norwegian government to request its facilitation and mediation between the Defence Ministry and the company to settle the compensation claim. This statement was made to reporters following the launch of the National Defence Strategic Plan and Defence Capability Blueprint 2026-2030, attended by Chief of Defence Force General Tan Sri Malek Razak Sulaiman.

Yesterday, the Public Accounts Committee (PAC) confirmed that it had received a special briefing from the Defence Ministry on the issue. The PAC subsequently urged the government to strengthen mitigation and diplomatic efforts to secure a fair resolution while safeguarding the country's fiscal sovereignty.