
Navy to identify alternatives for NSM after Norway missile deal falls through
The Defence Ministry has instructed the Royal Malaysian Navy (RMN) to identify alternatives to replace the Naval Strike Missile (NSM) system following procurement complications with Norway.
Defence Minister Datuk Seri Mohamed Khaled Nordin said the matter is being closely reviewed after Norway's decision affected the delivery of the surface-to-surface missile system intended for the Littoral Combat Ship (LCS) programme.
"Let that be with the Navy (to find the alternatives). We believe the best option is a system that is compatible and can be integrated with the combat system, from a country willing to transfer technology, and from a country we trust and believe is genuinely a partner.
"Sometimes they say they are friends when selling products, but once the purchase is made, they may not be as sincere. All these factors will be considered.
"But the key point now is that we are constrained and may have limited options because the ships are already being built. So we must find a replacement that can be implemented quickly," he said.
He told reporters this after visiting the LCS project at the RMN Naval Shipyard in Lumut today. Also present were Royal Malaysian Navy (RMN) chief Admiral Tan Sri Zulhelmy Ithnain and the ministry's secretary-general Datuk Lokman Hakim Ali.
He said the government remains focused on ensuring the LCS vessels are completed according to schedule, despite the setback involving one of the key weapons systems.
He added that the issue only affects the NSM component, while other core weapons systems remain unaffected.
"We are aware that these ships are equipped with four types of weapon systems, namely surface-to-surface, surface-to-air, anti-submarine warfare systems and electronic warfare systems.
"So, the other three weapon systems are not affected; only the NSM is affected. We still have the rest.
"However, the impact is that the absence of this system cannot be replaced immediately because it involves integration with the ship's combat system, followed by testing, training and other related processes. So this is among the areas that will be affected.
"The RMN is working to identify alternatives to replace the Norwegian system, so that eventually these ships will be equipped with the planned weapons systems. So only one system is affected, the other three are fine," he added.
He added that while the ships are expected to be completed according to schedule, the absence of the NSM presents integration and operational challenges.
Khaled also confirmed that progress on all five LCS vessels remains on track, with delivery schedules unchanged.
"As of April, the work progress for each vessel is satisfactory. LCS 1 is at 84 per cent; LCS 2 at 79 per cent; LCS 3 at 71 per cent; LCS 4 at 60 per cent, and LCS 5 at 49 per cent.
"The differences in these figures are due to varying levels of progress for each ship and different phases of construction for each vessel.
"LCS 1 will be delivered in December this year, LCS 2 in August 2027, LCS 3 in December 2027, LCS 4 in August 2028 and LCS 5 in April 2029. That is the delivery schedule for each vessel," he said.
He acknowledged that the NSM issue does have some impact.
"Although the ships may be completed as scheduled, we may be without this system, the Naval Strike Missile. That is the only missing component," he said.
It was reported that Malaysia has issued a notice of demand to a Norwegian defence firm over the cancellation of an export licence for a missile system intended for the LCS, claiming losses exceeding RM1 billion.
The government is seeking both direct and indirect costs following Norway's unilateral decision to revoke the export licence for the defence system.
Malaysia had already paid 126 million euros (RM583 million), equivalent to 95 per cent of the contract value, before the cancellation.