KUALA LUMPUR — Malaysia's government is seeking about 1 billion ringgit ($251 million) in compensation from Kongsberg Defense & Aerospace AS after Norway revoked an export permit that scuttled a naval missile defense deal for Malaysia's combat ships. Defense Minister Mohamed Khaled Nordin said the government had issued a formal notice of demand to the Norwegian firm following the cancellation.

The cancellation blocked delivery of the Naval Strike Missile system and launcher components that Malaysia had already largely paid for. Malaysia has paid 126 million euros ($146 million) in direct costs for the deal, with indirect costs bringing the total claim to about 1 billion ringgit. Those indirect costs include the removal of missile mounting systems already installed on the navy's vessels and the integration of replacement systems.

Malaysia signed a deal in 2018 for Kongsberg to arm its new class of littoral combat ships with the NSM anti-ship missile system under a broader naval modernization program. The Malaysian government protested the cancellation of the export permit.

"What happened to us is not just a defense procurement issue, but reflects an erosion of trust in international relations," Mohamed Khaled said. "When such commitments can be unilaterally revoked, confidence in the entire system begins to erode," he added.

In response to queries from The Associated Press, Norway's foreign ministry said it has strengthened oversight by restricting sales of its most sensitive defense technologies to the country's allies and closest partners. The ministry said it was unable to comment on individual cases due to confidentiality obligations under the Export Control Act.