The minister added that about 30 per cent of the combat ship project components were locally sourced and expressed hope that the percentage could be increased in future naval projects.
“This has always been our goal, and this incident involving Norway will push us to further strengthen our focus on ensuring we are not overly dependent on foreign countries,” said Khaled.
“In addition, the government must be more cautious in procurement dealings with other countries that could potentially take similar action against Malaysia.”
Khaled reportedly said he hoped that members of the Association of Southeast Asian Nations (ASEAN) regional bloc that are not close allies of Norway will learn from Malaysia’s experience and avoid dealing with the Scandinavian nation.
“They refused to issue the export licences because their new policy restricts the export of sensitive defence technology only to allies and close strategic partners.” Khaled was quoted as saying by The Edge Malaysia.
“Meaning that the export is limited to members of NATO and countries regarded by Norway as strategic partners,” he said, referring to the North Atlantic Treaty Organization.
KDA said in 2018 it had agreed to a 124 million euros contract with the Royal Malaysian Navy to supply naval strike missiles for six LCSs.
Norway confirmed on May 15 that it revoked the export licences for the naval strike missile system, citing tighter restrictions on some of its “most sensitive” defence technologies and that exports would be limited to its “allies and closest partners”.
“This is solely due to Norway’s application of the export control regulations and it is regrettable that this affects Malaysia,” its foreign ministry added.
Earlier on May 14, Malaysia’s Prime Minister Anwar Ibrahim voiced his “vehement objection” to what he described as Norway’s “unilateral and unacceptable decision” to revoke the export contracts, in a telephone call with Norwegian counterpart Jonas Gahr Stoere.
“Malaysia has honoured every obligation under this contract since 2018: scrupulously, faithfully and without equivocation,” Anwar said on Facebook.
“Norway, it appears, has not felt compelled to extend us the same courtesy and demonstration of good faith,” he added.
Anwar said that he had told Stoere that Norway’s move would have grave consequences for Malaysia’s defence operational readiness and its LCS modernisation programme would carry “broader ramifications for the regional balance”.
Khaled previously said on May 14 that the defence ministry had formed a special committee to assess the scope of legal action against Norwegian firm KDA, citing the nearly 95 per cent of contract value paid that amounted to more than RM500 million.
He also said that the first indication of issues with the naval strike missile system procurement emerged when the delivery was not fulfilled in March.
