Defence Minister Mohamed Khaled Nordin cautioned that any clash near the Philippines’ Balabac Island could spill over into Malaysia as the US expands its military presence there.

However, he said the developments should be viewed from the perspective of preparedness, rather than as a direct threat to Malaysia.

“I want to clarify that we are not worried about the military build-up in Balabac.

“What I want to emphasise is that when the Philippines upgrades its bases and military presence there, any dispute or clash in that geopolitically small area could spill over into Malaysia,” Bernama reported him as saying after a groundbreaking ceremony for an orphanage in Kota Tinggi, Johor, today.

In August, Prime Minister Anwar Ibrahim announced that the government would strengthen defence infrastructure in Sabah amid regional geopolitical uncertainty and the expansion of US military facilities on Balabac.

The Philippine island lies about 50km from Sabah’s Banggi and Balambangan islands. The latter hosts a maritime radar installation that covers much of northern Sabah.

Speaking at the Budget 2027 Engagement Session in Putrajaya in August, Anwar said Philippine President Ferdinand Marcos Jr had cited tensions with China as the reason for the military expansion.

However, he said the Philippines’ territorial claim involving Sabah remained a concern despite the countries’ “very good” bilateral relations.

At the time, military news portal Naval News had reported that the US Army deployed M142 High Mobility Artillery Rocket Systems (Himars) to Balabac in July.

Anwar did not specify the planned upgrades but said Malaysia aimed to improve Sabah’s defences, although it could not match the US military presence on Balabac.

Pursuing claims against Norwegian company

Separately, Khaled said the government would pursue its claim against a Norwegian company following the cancellation of the export licence for the Naval Strike Missile (NSM) anti-ship missile system to Malaysia.

The government is evaluating replacement systems from three countries, with estimated costs ranging from RM700 million to more than RM1 billion, requiring fresh funding.

He said procurement must be expedited because securing the missiles takes years and requires advance orders.

The Norwegian government was previously reported to have cancelled the export licence for the NSM and its launcher system, citing national security concerns.


READ MORE: Fact check: Why did Norway ban missiles shipment to Malaysia?


Malaysia subsequently sent the company a letter of demand seeking more than RM1 billion and is awaiting a response from the Norwegian government.

Meanwhile, Khaled said the government plans to rebalance the deployment of armed forces personnel between the peninsula and Sabah and Sarawak.

Currently, about two-thirds of personnel are stationed in the peninsula, with the remaining third in Sabah and Sarawak.

“We want the ratio to be 50 percent each in the peninsula and in Sabah and Sarawak, to balance it out,” he added.