Royal Malaysian Navy (RMN) update

Ananda

The Bunker Group
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Lunas X account shown photos on 3 Maharajalela Frigates already launch and working on finishing and system integration. This is already years late due the predecessors (Boulstead Shipyard) miss management. However Lunas manage to work out and now seems in line to finishing those hulls.

From planned 6, now Lunas going to finish 5 of them, as from what I gather from Malaysia media and forums, those 5 already have most parts available. Building sixth vessel means doing from scratch, something that Malaysia MinDef decide not to finance it. Thus basically Lunas now task to finish all the available parts that Boulstead already source and assembly.
 

koxinga

Well-Known Member
MICA for Maharaja Lela class FFG.

Unsure if it is the new NG version, but 29 is a very small batch. Considering 5 x LCS and each one with a 16 VLS, this means just 5 per ship. Probably an initial batch.

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Ananda

The Bunker Group

7 years late from initial 2019 schedulle, but a clear progress afterall. #2 and #3 also already launched, as they already on more advance stages before Boulstead Management debacle. Let's how LUNAS able to rectified those Boulstead misshap on schedulle.
 

koxinga

Well-Known Member
Norway blocks the delivery of NSMs to Malaysia. Note, this is a signed deal, dating way back to 2018. The deliveries was reported to be imminent.

Now the question would be the diplomatic fall out, given this was sprung on Malaysia at the 11th hour. Also, no mention of compensation.



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Sandhi Yudha

Well-Known Member
Norway blocks the delivery of NSMs to Malaysia. Note, this is a signed deal, dating way back to 2018. The deliveries was reported to be imminent.

Now the question would be the diplomatic fall out, given this was sprung on Malaysia at the 11th hour. Also, no mention of compensation.



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1. I wonder what the reason is to block/deny the delivery of those NSMs (do the Norwegian armed forces urgently require the NSM to protect the country, is there an internal political reason, or are there Norwegian political parties against defence exports in general or only to Malaysia?)
2. Why does Norwegia wait so long with this announcement? The contract was signed almost 8 years ago.
3. This can delay even more the delivery of the Gowind Class frigates.
 

John Fedup

The Bunker Group
1. I wonder what the reason is to block/deny the delivery of those NSMs (do the Norwegian armed forces urgently require the NSM to protect the country, is there an internal political reason, or are there Norwegian political parties against defence exports in general or only to Malaysia?)
2. Why does Norwegia wait so long with this announcement? The contract was signed almost 8 years ago.
3. This can delay even more the delivery of the Gowind Class frigates.
The article mentions changes to Norway's export policies wrt NSMs. Would be interesting to know the change details. The eight year delay is kind of strange. Nevertheless I suspect demand exceeds production capacity and deliveries are going to deep pocket clients.
 

Sandhi Yudha

Well-Known Member
The article mentions changes to Norway's export policies wrt NSMs. Would be interesting to know the change details. The eight year delay is kind of strange. Nevertheless I suspect demand exceeds production capacity and deliveries are going to deep pocket clients.
Yes, for some reason many navies switch over from Harpoon and Exocet to NSM. We are just lucky that TNI-AL stays with the MM40 and C705.
 

Ananda

The Bunker Group

Well I believe this situation already ruin Kongsberg and Norwegian name as reliable defense supplier, at least in this part of Asia. Either way the ship is basically using French sensors, put MBDA Exocet Blk 3 can answer the dilemma. Putting Roketsan Atmaca can also put commonalities with their Turkiye build Corvettes.

In my opinion the present situation being blown up by Malaysia Administration perhaps as preperation to sue legal damage on contract termination from Norway side.
 

swerve

Super Moderator
It's not Kongsberg's fault if the Norwegian government changes the rules on export licences.
Obviously, the new rules are going to limit NSM sales, since many of their target customers won't be classified as allies or "closest partners".
 

koxinga

Well-Known Member
It's not Kongsberg's fault if the Norwegian government changes the rules on export licences.
Obviously, the new rules are going to limit NSM sales, since many of their target customers won't be classified as allies or "closest partners".
The issue is apparently due to the inclusion of US ITAR restricted components in the latest versions
 

Ananda

The Bunker Group

As predicted, Malaysia blown up the NSM export license as part of preparation to get legal compensation both for payment repatriation and damages.

It's not Kongsberg's fault if the Norwegian government changes the rules on export licences.
That's why in my previous post I stated this is going to ruin the reputation of Kongsberg and Norway as dependable defense items suppliers in this part of Asia at least. Malaysia clearly want to drag this toward legal action and can be a prolong ones as part to punish both of Konigsberg and Norway legally.

Any defense suppliers will always going to be restricted by changes in their country export policies and political whims. However it does not stop them on legal responsibilities for contract breach. That's part of commercial contract agreement and it is part of International Trade law. The one that revoke export license is not US (as component suppliers), but Norway.
 

swerve

Super Moderator
However it does not stop them on legal responsibilities for contract breach. That's part of commercial contract agreement and it is part of International Trade law. The one that revoke export license is not US (as component suppliers), but Norway.
There's a legal principle called force majeure. A company is not, in general, legally liable for something which is beyond its control. What exactly is covered by it depends on the laws of the country or countries governing the contract, & the terms of the contract, but if a company is unable to fulfil a contract because of an unexpected & not reasonaby foreseeable legal change in its own country, it usually can't be sued for failure to fulfil it. I would expect it to have to refund any money paid. In this case, I expect Kongsberg will try to sell the missiles to a country which the new restrictions permit, to recover its losses as far as possible.

If Norway cannot allow the export because the USA has changed ITAR restrictions on specific components (I don't know if that's the case), again, that's beyond Norway's control. If the change was expected, it should be possible to sue the Norwegian government, but if it's unexpected, Norway might be able to claim force majeure. Norway's import of components subject to ITAR rules is dependent on Norway complying with US rules. Break them, & the USA could legally & contractually cease all support for, e.g, Norway's F-35s, & much more.

None of this applies to reasonably foreseeable events, such as bad weather, or earthquakes in earthquake-prone regions. One should insure against them, as far as possible.
 

Ananda

The Bunker Group
There's a legal principle called force majeure.
This situation can't be simply call force majeure. That'd more to the situation beyond their control, like war, natural disaster or pandemic like Covid. Breach of contract is not force majeure, especially if the reason political shift. This contract already years old and payment already being made most of it. US items in the NSM already been known, and company with good faith in contract should warn potential customers on that possibilities. However seems Kongsberg do not talk on this when market NSM in this part of the world. Malaysia is not the only one that Kongsberg offering NSM, and potential problen on ITAR components toward specific customers seems not being talk.

Norway cannot allow the export because the USA has changed ITAR restrictions on specific components
But that's about it, this talk on ITAR restriction to Malaysia is mostly speculation. As US themselves still not saying anything on the matter of NSM export to Malaysia. It is Norway that forbid and revoke the export license when the contract already run for years and 95% payment (according to Malaysia source) already being paid. Norway have lot of time to inform Malaysia on potential problen, thus can give room for negotiate cancelation. However they don't do that.

The ITAR problem just speculation again, and if it is ITAR problem license, it is US that going to talk. Just like they hold Turkiye attack helicopter export to Philipines. However Turkiye as supplier do lobby US to get problem solve, to maintain their credibility as supplier. Thus on this case shown the problem is from Norway and not US.
 

StevoJH

The Bunker Group
Konigsberg is not Norway, Konigsberg does not make the laws.

As such, a change of laws is out of Konigsberg's hands, hence Force Majeure.

If the Contract is between Malaysia and the Norwegian *Government* on the other hand, things are a bit different.
 
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