MELBOURNE — Norway’s decision last month to unilaterally scrap the sale of the Naval Strike Missile (NSM) to Malaysia was regrettable and an example of a more powerful nation ignoring the rules it claimed to adhere to, Malaysian Defense Minister Mohamed Khaled Nordin said.
“Norway’s action has created more than just a bilateral contract dispute. It raises a deeply troubling question about whether international agreement and strategic partnership can still be trusted at all,” Nordin said during a plenary session at the Shangri La Dialogue in Singapore.
Reports emerged in early May that Oslo was reneging on a defense exports approval for the NSM.
“Norwegian authorities have concluded to revoke certain export licenses related to specific technologies. This change is due to Norway’s stricter controls of certain technologies,” a spokesperson for Norway’s ministry of foreign affairs told Breaking Defense at the time.
Nordin during the Shangri La Dialogue also slammed the “conspicuously muted” international response to the decision, saying that it was an indication that some powerful countries and their allies were above scrutiny.
“The silence of many surrounding Norway’s unilateral decision was particularly revealing. No serious concern was raised about the integrity of contracts or accountability,” Nordin said.
He later told reporters on the sidelines of the dialogue that he had conveyed his disappointment over the canceled sale during a meeting with Norwegian Defense Minister Tore O. Sandvik.
Nordin also broached on the topic of compensation and a refund of the money already paid to manufacturer Kongsberg for the missiles during the meeting, which according to Malaysia’s official news agency Bernama amounted to more than 500 million Malaysian ringgit ($126.1 million), or 95 percent of the contract value.
When asked about the potential for compensation, Sandvik told Singapore’s Channel NewsAsia that any refund and compensation was a matter between Malaysia and Kongsberg.
Sandvik further said he apologized for the cancellation of the sale during the meeting with Nordin, but defended the decision by saying that it was made due to new laws regarding the transfer of sensitive military equipment.