Malaysia is seeking €226.13 million (approximately $265 million) in compensation from a Norwegian defense firm following the cancellation of a contract, Defense Minister Mohamed Khaled Nordin said on Friday.
Kongsberg Defense & Aerospace AS had signed a contract to supply Naval Strike Missiles for the Royal Malaysian Navy.
The claim includes €129.86 million in direct losses for payments already made by the government and €96.26 million in indirect losses covering additional costs and damages linked to the failed project, local media outlet Malay Mail reported.
“The actual additional costs, or ‘overrun costs’, to be borne by the government have yet to be finalized as they depend on the settlement method agreed upon and the replacement weapons system currently under evaluation,” Mohamed Khaled told parliament.
The minister also provided an update on the navy's littoral combat ship KD Maharaja Lela, said sea trials conducted on April 29 showed positive progress.
He said the vessel is undergoing phased testing of its navigation, propulsion and other critical systems before formal acceptance by the navy, which remains subject to successful sea acceptance trials and the completion of any required technical corrections.
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