Malaysia may fork out up to RM1bil more for new missile system

Malaysia is considering allocating RM700 million to more than RM1 billion for a new surface-to-surface missile system after Norway cancelled the export licence for the system intended for the navy’s littoral combat ships (LCS).

Defence minister Khaled Nordin said Putrajaya could not wait for the funds tied up in the Norwegian procurement to be recovered before moving ahead with a replacement.

“So, how do we replace the missiles that were supposed to be placed on the ship? The government may have to consider a new allocation to buy a replacement,” The Star quoted him as telling reporters after an event in Kota Tinggi, Johor, today.

Khaled said the government was weighing factors such as cost, delivery timelines, and compatibility with the combat management system already installed on its ships.

“Missiles are not like buying a car from a showroom. They must be ordered, and delivery can take three or four years,” he said.

He explained that the vessels’ combat management system was supplied by a French naval defence company, making compatibility an important consideration.

In June, Khaled said Malaysia was evaluating missile systems from countries such as Italy, Japan, France, Turkey and South Korea.

Malaysia ordered the system from Kongsberg Defence & Aerospace under a 2018 contract to equip six LCS, but the Norwegian government has since revoked the export permit, saying exports of its defence technology would be limited to its “allies and closest partners”.

The government is seeking more than RM1 billion in compensation from Kongsberg for direct and indirect losses as the government had already paid 95% of the RM634 million procurement price.

Separately, Khaled said Malaysia needed to strengthen its defence preparedness in view of developments around Balabac Island in the southern Philippines.

He said the growing presence of Philippine and US forces in the area was a concern given the island’s proximity to Malaysia.

He stressed that Malaysia’s preparations are not directed at the Philippines but are intended to ensure the country can respond if any conflict in the area spills over into Malaysian territory.

Khaled also said the situation could become more complex if tensions between the Philippines, the US and China triggered an unexpected confrontation.

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