Malaysia evaluates multiple offers to replace cancelled Naval Strike Missile system

The Malaysian Defence Ministry is assessing proposals from three to four countries to replace the Naval Strike Missile (NSM) system, after a Norwegian company canceled the delivery of the missiles, Defence Minister Datuk Seri Mohamed Khaled Nordin said during a visit to Istanbul on May 24-25, 2026 ^{[1, 2, 3]}.

The original NSM contract was signed in April 2018 for €124 million (RM571.9 million) to equip six Littoral Combat Ships (LCS) in the Malaysian navy ^{[1, 3]}. However, the Norwegian government withdrew export licenses related to sensitive defense technology, citing tightened global security and export controls, which forced the termination of the NSM deal ^{[1, 2, 3]}.

Minister Khaled said key factors in evaluating replacement offers include confidence in the suppliers, the need for major modifications to existing ships, costs, and delivery timelines. "So far there are three to four countries (that have submitted offers)... countries that we are confident and believe are sincere and want to help us," he said ^{[1, 2, 3]}.

Malaysia has issued a notice of demand or claim to the Norwegian missile manufacturer for losses exceeding RM1 billion due to the cancellation ^[2]. Khaled plans to meet his Norwegian counterpart at the end of May during the Shangri-La Dialogue 2026 in Singapore to raise Malaysia's grievances. "We have informed them that we want to meet the Norwegian Defence Minister. Whether it is beneficial or not, that is fine. At the very least, I can meet him and inform him that we are unhappy with their actions," Khaled said ^[3].

Contract negotiations to acquire the NSM system began nearly eight years ago, and the cancellation marks a significant setback for Malaysia's naval modernization program ^{[1, 3]}. The Defence Ministry is now focused on finding a suitable missile system that can be integrated promptly onto the Littoral Combat Ships without extensive refits ^{[1, 2, 3]}.

The meeting between Malaysia's Defence Minister and Norway's Defence Minister is expected before the end of May, coinciding with the Shangri-La Dialogue in Singapore ^{[1, 2, 3]}.