Norway revoked the export licence for Naval Strike Missiles (NSM) intended for Malaysia’s Littoral Combat Ship (LCS) project, citing tighter controls on sensitive defence technologies [1, 2, 3]. Malaysia had paid about 126 million euros (approximately RM583 million), roughly 95% of the contract value before the cancellation [2, 3].

The Malaysian government is seeking damages exceeding RM1 billion from Norwegian defence firm Kongsberg Defence & Aerospace due to the licence revocation and contract cancellation [1, 2]. Defence Minister Datuk Seri Mohamed Khaled Nordin said the unilateral decision caused direct losses exceeding RM600 million for missile procurement, with indirect costs potentially surpassing RM1 billion [3].

The Public Accounts Committee (PAC) will summon the Defence Ministry to provide clarification and updates on the situation. PAC chairman Datuk Mas Ermieyati Samsudin said, "We will call the ministry to appear before the PAC to provide clarification and a briefing to both the PAC and the Select Committee on Security" [1]. She also noted, "That was some time ago, and I understand there have been new developments since then" regarding prior communication with the Defence Ministry's secretary-general [2].

A joint briefing is scheduled for June 23, 2026, involving the PAC and the Parliamentary Special Select Committee on Security to discuss the missile export licence revocation [1, 2, 3].

The LCS project, begun in 2011, planned to equip six Maharaja Lela-class ships with the Norwegian NSM system under a 2018 contract worth €124 million (RM571.9 million) [1, 3]. The project has experienced delays and cost overruns, with total costs rising from RM9 billion to over RM11 billion, and the first ship delivery now expected by the end of 2026 [1].

PAC is also working on a report reviewing public airport management and recently conducted a site visit to Kuala Lumpur International Airport to verify project progress firsthand. Samsudin said, "By conducting site visits and observing the progress of projects and operations firsthand, we are able to further verify the information presented during the proceedings" [2, 3].

The Defence Ministry is expected to appear before the PAC for further explanations shortly, ahead of the June 23 joint parliamentary briefing.