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Malaysia Suspends New Defense Procurement from Norway Amid Export License Dispute

Kuala lumpur: Malaysia on Wednesday announced the immediate suspension of all new defense procurements from Norway. 'The Cabinet has decided that the Defence Ministry suspend with immediate effect any procurement of new defence equipment or assets from Norway,' government spokesperson Fahmi Fadzil stated, according to state-run news agency Bernama.

According to Anadolu Agency, the decision followed a Cabinet meeting where officials reviewed Norway's revocation of an export license for the Naval Strike Missile (NSM), an anti-ship system intended for the Royal Malaysian Navy's littoral combat ships (LCS). Malaysian Prime Minister Anwar Ibrahim had previously criticized Oslo's decision in May, warning that the cancellation could significantly weaken Malaysia's defense readiness and potentially affect regional security.

Norway reportedly justified the revocation on national security grounds, a rationale that Anwar described as 'unilateral and unacceptable.' In response to the cancellation, Malaysia's Defense Ministry issued a notice of claim worth approximately 1 billion Malaysian ringgit ($245 million) to the defense company involved in the canceled contract.

Additionally, four countries have been identified as potential suppliers of anti-ship missile systems for Malaysia's LCS project, as the nation seeks alternatives following the halted procurement from Norway.