SINGAPORE (May 31): Norwegian Defence Minister Tore O Sandvik has apologised for his government’s decision to cancel the export licence for naval strike missiles (NSM) to Malaysia, said Defence Minister Datuk Seri Mohamed Khaled Nordin.

Mohamed Khaled said the apology was delivered during a bilateral meeting on Sunday on the sidelines of the 23rd IISS Shangri-La Dialogue in Singapore.

He added that Sandvik also detailed the reasons behind Norway’s cancellation decision.

“He apologised and laid out the basis for the cancellation, reasons we can accept, whether factual or fabricated, if indeed they never intended to proceed or had already revoked the NSM export licence.

"We conveyed honestly and plainly our disappointment, because a long, close and good relationship has existed between Norway and Malaysia, yet this NSM cancellation episode has happened,” he told Bernama after the meeting at the Shangri-La Hotel here on Sunday.

The Norwegian government previously revoked Malaysia’s export licence for the NSM system and its launchers, citing national security concerns.

According to Kongsberg Defence & Aerospace (KDA), the NSM deal was signed between the Royal Malaysian Navy and KDA in April 2018. The €124 million (RM571.9 million) contract was meant to equip six new Littoral Combat Ships (LCS).

On Malaysia’s claims, Mohamed Khaled said the government expects Norway, as a friendly nation, to return the payments already made, which is approximately 95% of the total contract value.

"Norway's defence minister will raise this with his government. But whether we get a favourable outcome, I doubt it," he said.

He also confirmed that Malaysia has sent a formal letter of demand to the company involved and is now awaiting Norway’s response.

"We’ll see if the Norwegian government truly wants to maintain good relations and preserve the friendship; it may take action to return what we have already paid," he added.

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