KUALA LUMPUR: Delays in cabling, piping, equipment installation and other onboard works have caused a cascading effect on the completion of LCS-1, Defence Minister Datuk Seri Mohamed Khaled Nordin told the Dewan Rakyat today.
Khaled said the delays had affected subsequent activities, including setting to work, trials and commissioning, harbour acceptance tests and sea acceptance tests.
He said Lumut Naval Shipyard (LUNAS), the contractor for the littoral combat ship (LCS) project, had informed the ministry that it could not fulfil its earlier commitment to hand over LCS-1 in December 2026.
“Based on all the issues and expected cascading delays I mentioned, I have been informed by the contractor, LUNAS, that they cannot fulfil their original commitment and assurance that LCS-1 could be handed over in December 2026.
“Instead, LUNAS has given a new date that LCS-1 is expected to be handed over in April 2027, which is about six months from now,” he said when winding up the debate on the Auditor-General’s Report Series 2/2026.
Khaled said the Defence Ministry (Mindef) was disappointed with the delay, stressing that Mindef was the client and not the contractor building the ship.
“On the part of the Defence Ministry, representing the Malaysian Armed Forces and the Royal Malaysian Navy in particular, we are certainly saddened, disappointed and uncomfortable with the delay and the performance of the LCS construction entrusted to LUNAS.
“We must understand that the Defence Ministry is the client, the customer, not the contractor. We are not building the ship,” he said.
Khaled said Mindef had also issued a liquidated ascertained damages notice to LUNAS, stressing that the ministry would not compromise over delays.
He said LCS-1’s progress had improved slightly since the audit cut-off date, with physical progress reaching 86.39% as of August, compared with 85.47% as of June 25.
He said the delay had narrowed from 13.88% to 13.61%, while overall project progress had risen to 80.13% from 78.99%.
Khaled also said the Integrated Logistic Support and Trial Aid contract, which authorises shipboard activities and tests, was signed on Aug 26.
He said this meant training and related support activities could now begin.
He added that procurement of 3P medium-calibre gun ammunition and the integrated decoy launching system was under direct negotiation, while the letter of acceptance for the surface-to-air missile procurement had been signed.
The contract document for the surface-to-air missile system is expected to be finalised in mid-October.
On the Naval Strike Missile (NSM), Khaled acknowledged that LCS-1 would be received in April 2027 without the system.
However, he disputed the audit report’s projection that completion of LCS-1 could stretch to December 2035 because of the cancelled NSM supply.
Khaled said the projection was based on the previous Norway contract, which involved a longer delivery period following extensions, including issues involving components requiring United States approval and delays linked to the Covid-19 pandemic.
He said the ministry was considering alternatives, including missiles from LIG Nex1 of South Korea, Roketsan of Türkiye and MBDA of France, with estimated delivery periods of about three years.
“For that reason, the projection that LCS completion will be delayed until December 2035 is something we believe is inaccurate and untrue.
“Another matter I want to correct is the understanding that although the LCS will not have the NSM, it does not mean the LCS we receive later will not be equipped with any weapons system.
“The LCS will still be equipped with several other types of weapons systems,” he said.
