Norway halted the export of Naval Strike Missiles (NSMs) to Malaysia on May 19, 2026, citing restrictions on US-made components embedded in the missiles that limit sales to NATO and close allies only [1, 2]. The missiles, developed by Norway’s Kongsberg Defence & Aerospace, rely on a sensitive US-made gyroscope guidance component that falls under strict export controls [1, 3, 4, 2]. Malaysia is neither a NATO member nor a partner country, excluding it from obtaining export permission for these key parts [1, 2].
Norway invoked "force majeure" to cancel the missile contract, referring to tightened export regulations imposed by the United States [1, 2]. Malaysia had paid about 95 percent of the contract value, around RM634 million (approximately US$146 million) [4, 2, 5]. The Malaysian Defence Ministry is seeking compensation exceeding RM1 billion from Kongsberg for the cancellation and associated costs [3, 5].
Malaysian Prime Minister Datuk Seri Anwar Ibrahim condemned the decision as unacceptable, warning it would have "grave consequences for Malaysia's defence readiness." He said Malaysia has honored all obligations under the contract since 2018 [5]. Defence Ministry secretary general Datuk Lokman Hakim Ali said, "We are very disappointed with the decision, and we will seek to claim back the money paid under the contract" [1].
The US Embassy in Malaysia denied any involvement in Norway's decision and emphasized its continued strong defence cooperation with Malaysia. Chargée d'affaires David H Gamble Jr stated, "The United States remains committed to our robust defence and security relationship with Malaysia" and noted the US facilitated integrating the restricted guidance components into the missiles in 2024 to support Malaysia’s delivery [3, 4, 6, 2, 5].
Malaysia is exploring legal recourse and looking for alternative missile systems to address the disruption to its Littoral Combat Ship programme caused by the halt [1, 2]. The original contract for the NSMs was signed in 2018, with missile delivery initially scheduled for early March 2026 [5]. The US integration of restricted missile components to Kongsberg was completed in 2024 to prepare for the delivery [3, 4, 6, 2, 5].
The next concrete development will be Malaysia’s legal proceedings and negotiations to resolve compensation claims and find replacement missile solutions.
