Norway's foreign ministry has defended a decision to revoke export licenses linked to a naval missile system for Malaysia after Kuala Lumpur warned that the move could impact confidence in European defense suppliers.

The move had blocked delivery of the Naval Strike Missile system as well as launcher components that had been destined for Malaysia’s littoral combat ship program under the terms of a 2018 deal. The purchase had been planned as part of the Southeast Asian nation's wider naval modernisation efforts.

The Norwegian ministry on Friday said that while Oslo “greatly values its relationship with Malaysia,” it has increased oversight on defense technology and that exports of some of its “most sensitive" homegrown products would be limited to its “allies and closest partners.”

Malaysian Prime Minister Anwar Ibrahim had warned earlier this week that the decision could reduce confidence in European defense suppliers and may hurt Malaysia’s operational readiness.

Contracts are “not confetti to be scattered in so capricious a manner,” Anwar said. “If European defense suppliers reserve the right to renege with impunity, their value as strategic partners flies out the window.”