Anwar Ibrahim said he had raised a "vehement objection" in a phone call with his Norwegian counterpart Jonas Gahr Store, calling the decision "unilateral and unacceptable".

"Signed contracts are solemn instruments. They are not confetti to be scattered in so capricious a manner," Anwar said in a Facebook post.

Oslo's foreign ministry confirmed that "that certain licenses related to the export of specific defence technology to Malaysia have been revoked".

"This is solely due to Norway's application of the export control regulations, and it is regrettable that this affects Malaysia," the ministry said in a statement.

It added that it could not comment on individual contracts as they were covered under strict confidentiality clauses.

Anwar warned the decision "will have grave consequences for Malaysia's defence operational readiness and the Littoral Combat Ship (LCS) modernisation programme".

The LCS programme, first approved in Malaysia in 2011 with an initial contract worth six billion ringgit ($1.5 billion at current exchange rates), was for six vessels.

The deal, which had been plagued with allegations of mismanagement and rising costs, was relaunched in 2023 following a government review, with the number of ships reduced to five.

Delivery of the first vessel, expected in August, has been pushed back to December due to delays in equipment deliveries and ongoing rework, according to officials in local media reports.

Anwar said that the move will also "undoubtedly carry broader ramifications for the regional balance."

"If European defence suppliers reserve the right to renege with impunity, their value as strategic partners flies out the window," he said.

- Legal action? -

Norway's foreign ministry said the government had tightened controls on defence technology developed in Norway, saying "the security policy landscape in Europe and globally has changed significantly in recent years".

"Exports of some of the most sensitive Norwegian-developed defence technologies will be limited to our allies and closest partners," the ministry said.

Defence Minister Mohamed Khaled Nordin told reporters in Kuala Lumpur on Thursday that his ministry had formed a committee to assess possible legal action against the supplier of the missile system, Kongsberg Defence & Aerospace, following the cancellation of the procurement contract.

"A special committee at ministry level has been established to detail the claims, which are not limited to refunding payments already made, but also include damages arising from breach of contract," Mohamed Khaled said.