Malaysia is pursuing RM1.06 billion in compensation following the cancellation of its contract to procure the Naval Strike Missile (NSM) system from Norway’s Kongsberg Defence & Aerospace AS (KDA), with the government stepping up diplomatic efforts to resolve the dispute.
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 requested its assistance in facilitating negotiations with KDA over the compensation claim.
“We are committed to resolving this matter, which is why we issued the necessary notices from the outset.
“I believe the Foreign Ministry has written to the Norwegian government to request that it play a facilitating and mediating role between the Defence Ministry and the company, so that the company can settle the compensation claim,” he said.
His remarks came after the Public Accounts Committee (PAC) revealed on June 24 that it had received a special briefing from the Defence Ministry on the cancelled procurement.
Following the briefing, the PAC urged the government to strengthen mitigation measures and diplomatic engagement to secure a fair settlement while safeguarding the country’s fiscal sovereignty.
