KUALA LUMPUR: The Public Accounts Committee (PAC) wants the Defence Ministry (Mindef) and Royal Malaysian Navy to submit written progress reports on the littoral combat ship (LCS) project every three months from May to ensure any delays or new issues are detected and addressed early.
PAC chairman Datuk Mas Ermieyati Samsudin said the recommendation was part of six measures aimed at strengthening oversight of the long-delayed project.
"Mindef and the Navy must submit written progress reports... without fail... including the status of combat system integration tests, as the April 2026 testing phase is critical," she said at a press conference in Parliament here on Wednesday (July 8).
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Earlier, she tabled the PAC report on the progress of the LCS project.
The PAC also called on Mindef and the Finance Ministry to maintain strict financial discipline to ensure the project’s total cost remains within the fixed RM11.22bil ceiling.
It further urged Mindef to ensure all five ships are delivered to the Navy according to the agreed timeline and budget, while contractor Lunas must maintain sufficient contingency stock of critical equipment such as radar systems to prevent further delays caused by international vendors.
The committee also recommended that the government strengthen mitigation measures and diplomatic efforts to secure a fair resolution following Norway’s cancellation of the export licence for the Naval Strike Missile (NSM), while pursuing compensation through negotiations or legal proceedings based on contractual terms.
The PAC said it would continue to closely monitor the LCS project after conducting a site visit to Lumut, Perak, on Jan 30 and holding proceedings on Feb 4 to assess its overall progress.
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Mas Ermieyati said the PAC also summoned Mindef on June 23 for a comprehensive briefing on the implications of Norway’s decision to revoke the NSM export licence.
According to the report, overall physical progress of the project reached 75.73% in December, while the first vessel, LCS 1, stood at 82.9%.
LCS 1 successfully completed its first sea trial on Jan 28 at a speed of seven knots.
However, its delivery has been postponed by four months to December this year, while LCS 2 is now expected in August next year.
The delivery schedule for LCS 3 to LCS 5 remains unchanged through to April 2029.
The PAC said the delay was largely due to technical audit requirements by France’s Naval Group, which required rework on nearly 4,000 items, including the installation of an additional 50km of cabling on LCS 1.
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"The contract value remains fixed at RM11.22bil, with Lunas bearing all additional costs arising from rework and refurbishment without further government funding," it said.
The report also highlighted that 170 major shipboard systems, including live gun firing and shock certification, still need to undergo testing before delivery.
On the NSM issue, Mas Ermieyati said the PAC warned that Norway’s decision to revoke the export licence could affect the vessels’ combat capability, raising the risk of the ships being delivered without their primary missile system.
The committee also said that the Malaysian Anti-Corruption Commission has confirmed that criminal investigations into the project remain active, while governance investigations were completed in August 2023, with advisory recommendations issued to Mindef.
