Malaysia has signed a deal to purchase surface-to-air missiles for its long-delayed warship programme from European manufacturer MBDA, the defence ministry said, after an earlier contract for strike missiles was cancelled.
As the Southeast Asian nation seeks to upgrade its fleet, efforts to build a class of modern stealth surface combat vessels have been plagued by allegations of mismanagement, rising costs and delays.
The latest setback came after Norway cancelled in early May a deal for naval strike missiles — which Kuala Lumpur said it had already paid for almost entirely — triggering a diplomatic row and forcing Malaysia to seek alternatives.
In a late Wednesday announcement, the defence ministry said it had signed a letter of acceptance this week with MBDA France at the Farnborough International Airshow in Britain.
Malaysian media reported in April that the deal was valued at around $123 million.
“The letter of acceptance involves the procurement of a surface-to-air missile system to complement the Royal Malaysia Navy’s Littoral Combat Ship (LCS) weapons capabilities,” the defence ministry said on Facebook.
The procurement would “ensure that the vessels have air defence capabilities that meet the Royal Malaysia operational needs”, it said.
The government meanwhile is seeking more than $244 million in compensation from the Norwegian company involved in the cancelled deal.
The LCS programme, first approved in 2011 with an initial contract worth six billion ringgit ($1.5 billion), was originally planned for six vessels.
The programme was relaunched in 2023 following a government review, with the number of ships reduced to five.
Delivery of the first vessel, originally expected in August, has been pushed back to December because of delays in equipment deliveries and ongoing rework, according to officials cited by local media.