Kuala lumpur: Technical evaluations by the Ministry of Defence (MINDEF) and Royal Malaysian Navy (RMN) to choose a missile system to replace the Naval Strike Missile (NSM) for the Littoral Combat Ship (LCS) are set to be completed by the end of this month. Defence Minister Datuk Seri Mohamed Khaled Nordin made the announcement, highlighting the ongoing efforts by RMN and MINDEF to assess various surface-to-surface missile systems from different original equipment manufacturers (OEMs) worldwide, following Norway's revocation of the NSM's export licence.
According to BERNAMA News Agency, the Defence Minister emphasized that the evaluation process includes a comprehensive assessment of the offers and proposals based on RMN's operational needs. This encompasses the missile system's integration capability with the LCS Combat Management System, the delivery timeline, procurement costs, and the level of technology and operational capacity that meets or exceeds the NSM standards. The technical evaluation is anticipated to conclude by the end of this month before progressing to further assessments.
Mohamed Khaled also addressed the implications of the Norwegian government's decision to revoke the NSM export licence, underscoring its impact on Malaysia's strategic interests, public fund utilization, and national defence readiness. He detailed that the NSM procurement process began in 2011, with contracts worth a total of approximately RM642.6 million signed over the years. Despite fulfilling contractual obligations and payments, Norway suspended the export licences, citing its policy of exporting the system only to NATO members and allies.
The Defence Minister criticized Norway's action as undermining international agreements and trust, expressing Malaysia's disappointment and regret over the decision. He reiterated that although the absence of the NSM limits the LCS's anti-ship warfare capabilities, it does not affect the delivery schedule of the LCS to the RMN. The Malaysian Armed Forces remain committed to defending the nation's waters, airspace, and borders.
Additionally, Mohamed Khaled revealed that MINDEF has issued a claim against Kongsberg Defence and Aerospace (KDA) for approximately RM1.05 billion, covering payments and losses from the export licence cancellation. The government plans to negotiate an amicable settlement in mid-August before considering further actions. This episode, he noted, underscores the strategic risks of foreign supply chain dependence, prompting the government to bolster the National Defence Industry Policy (NDIP) to enhance local defence industry capacities and reduce reliance on external sources.