Malaysia signs missile purchase deal for delayed warship programme

Malaysia has signed a deal to buy surface-to-air missiles for its long-delayed warship programme from European manufacturer MBDA, the defence ministry said. The announcement followed the cancellation of an earlier contract for naval strike missiles. Malaysia has been seeking to upgrade its fleet through a class of modern stealth surface combat vessels, but the programme has faced allegations of mismanagement, rising costs and delays. Norway cancelled a deal for naval strike missiles in early May. Kuala Lumpur said it had already paid for almost all of that contract, and the cancellation led to a diplomatic dispute and a search for alternatives. In a late Wednesday announcement, Malaysia's defence ministry said it 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 worth about $123 million. The defence ministry said the purchase involved a surface-to-air missile system for the Royal Malaysia Navy's Littoral Combat Ship weapons capabilities. It said the procurement would give the vessels air defence capabilities that meet navy operational needs. The government is also seeking more than $244 million in compensation from the Norwegian company involved in the cancelled deal. The Littoral Combat Ship programme was first approved in 2011 with an initial contract worth six billion ringgit, or $1.5 billion, and was originally planned for six vessels. It was relaunched in 2023 after 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 equipment delivery delays and continuing rework, according to officials cited by local media.