Post by : Shakul

Malaysia's Ministry of Defence (Mindef) has clarified that the RM571.9 million payment made for the Naval Strike Missile (NSM) system under the Littoral Combat Ship (LCS) project was not an advance payment. The ministry said the payment was released only after the missile systems had been fully manufactured, tested, and approved under the Royal Malaysian Navy's required standards.

According to Mindef, all missile systems had successfully completed production and performance testing before the payment was processed. The ministry stressed that the payment complied fully with the contractual milestones and was based on completed work rather than future deliveries.

Contract Includes Government Protection

Mindef rejected allegations that the procurement contract lacked safeguards for Malaysia's interests. The ministry stated that the agreement contains legal provisions allowing the government to take action if the supplier fails to meet contractual obligations or breaches the agreement.

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The ministry also explained that the Norwegian government's decision to revoke the export licence was an external factor beyond the control of both Malaysia and the supplier. Authorities are now using contractual mechanisms to pursue claims for the recovery of payments and any related damages.

Why did Malaysia pay RM571.9 million for the missile system?

The Defence Ministry said the payment was made after the Naval Strike Missile systems had been fully manufactured, passed Royal Malaysian Navy tests, and met contractual milestones.

Why is the NSM export licence an issue?

The Norwegian government revoked the export licence after the payment was made, preventing delivery of the missile system despite the equipment being completed.

LCS Project Remains on Track

Mindef said the export licence issue has not affected the delivery schedule of the Littoral Combat Ships. The ministry added that the Royal Malaysian Navy continues to evaluate alternative missile systems that could replace the NSM if necessary.

Officials also assured Parliament that Malaysia's naval defence capabilities remain operational. Existing naval assets and weapons systems continue to safeguard the country's maritime sovereignty while replacement options are being assessed.

Malaysia's Defence Ministry has clarified that the RM571.9 million payment for the Naval Strike Missile system under the Littoral Combat Ship project was released only after production and successful military testing. The ministry said the payment followed contractual milestones and was not an advance. Following Norway's export licence revocation, Malaysia is pursuing contractual remedies while evaluating alternative missile systems to ensure continued naval operational readiness.

Government Responds in Parliament

The clarification was issued through a written parliamentary reply addressing questions over the missile procurement process and the protection of government interests. Mindef reaffirmed that legal safeguards remain in place and that recovery measures are being pursued under the existing contract.

The ministry added that Malaysia's defence preparedness has not been compromised and that all necessary steps are being taken to protect national security and public funds.

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