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MALAYSIA’S first Littoral Combat Ship faces severe operational delays after Auditor-General findings revealed a 7.55 per cent project lag, forcing the Ministry of Defence to seek up to RM1 billion for alternative missile systems following Norway’s refusal to grant export permits or refund advance payments.
The latest audit findings indicate that delays ranging between 30 and 108 days across all five vessels endanger the earliest target handover date of 26 August 2026, or its revised 26 December 2026 timeline.
Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi warned that even if handed over on schedule, LCS 1 will remain without full operational capability due to uncompleted weapon systems and pending supplementary contracts.
Addressing the impasse at the Siber Siaga exhibition in Kuala Lumpur on Monday, Defence Minister Datuk Seri Mohamed Khaled Nordin revealed that diplomatic entreaties—including direct representations from Prime Minister Datuk Seri Anwar Ibrahim and Foreign Affairs officials—have yielded zero cooperation from Oslo.
With Norwegian authorities refusing to issue advance refunds for payments already disbursed, Malaysia is now pursuing compensation directly against supplier Kongsberg Defence & Aerospace AS through a complex and drawn-out legal process.
To prevent the nation's premier naval assets from sitting idle, the Ministry of Defence is preparing to request a new government allocation between RM700 million and over RM1 billion to procure surface-to-surface missiles from three alternative candidate nations.
Selecting a replacement system presents significant technical and logistical hurdles, as new missile orders carry procurement lead times of three to four years.
Furthermore, any alternative ordinance must seamlessly integrate with the LCS fleet's nearly completed Combat Management System, which was supplied by a French naval defence contractor.
Khaled affirmed that the Ministry will proceed with equipping the ships independently of the legal recovery proceedings against Norway to safeguard national maritime readiness. - October 6, 2026
