Minister: Additional cost for LCS involves integration, launcher system

The additional costs arising from the use of the Turkish-made Atmaca missile for the navy littoral combat ships (LCS) pertain to integration work and the launcher system, said Defence Minister Khaled Nordin.

He said the government had already placed an order for Atmaca missiles for the littoral mission ships (LMS), which allows a portion of that order to be allocated to LCS, serving as a replacement for the Naval Strike Missile (NSM) from Norway.

“I had already ordered the Atmaca missiles for LMS. So, now I simply need to take those Atmaca missiles and install them there (on the LCS).

“The costs involve integration and the launcher system (additional costs). Once Norway returns our funds, we will use that money to pay for the new missiles,” Khaled (above) added.

The minister said this to reporters after attending the handover ceremony for the Madani Adopted School programme at Sekolah Kebangsaan Panchor today.

Khaled noted that the Atmaca missiles ordered for the LMS are expected to be ready by 2028, and utilising the same system allows the ministry to leverage the existing order.

However, he did not disclose the total additional cost involved, as the matter is still under negotiation.

Refunds from Norway

When asked about the government’s confidence in recovering the payment from Norway, Khaled indicated that the process might require legal action, such as arbitration or court proceedings.

“For instance, if we proceed to arbitration, it is possible that the other party may not comply with the arbitration ruling.

“In that case, we would have to take the matter to court. Two years, three years, four years, five years, I honestly don't know," he said.

On Nov 12, Khaled was reported as saying that the government had selected Turkiye as an alternative supplier to replace the NSM system, following an evaluation of proposals from several countries including France and Italy based on factors such as price, delivery timeline, and upfront costs.

He said further negotiations would be held with the Turkish side to finalise the procurement, which includes ensuring the compatibility and integration of the missile system with the LCS.

On May 19, the Defence Ministry issued a letter of demand to the Norwegian defence manufacturer, Kongsberg Defence & Aerospace AS, seeking approximately RM1 billion in compensation following the revocation of the NSM export permit.

This amount encompasses direct costs of €126 million (RM583.47 million) already paid by the government, as well as claims for indirect losses.

- Bernama

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