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21 JUNE 2026

Wednesday, July 8, 2026

LCS project: PAC wants Defence Ministry to provide quarterly updates

 


The Parliament’s Public Accounts Committee (PAC) has proposed that the Defence Ministry submit quarterly reports on the littoral combat ship (LCS) project to allow closer oversight of its progress.

PAC chairperson Mas Ermieyati Samsudin said the reports, which could also be submitted by the navy, would help identify and resolve issues at an earlier stage.

Speaking at a press conference in Parliament today, she said the reporting should begin from May this year and include updates on combat system integration, as the April testing phase is critical to the project’s completion.

The proposal was among six recommendations issued by the PAC to the government.

“PAC has decided to continue to closely monitor the LCS construction project for the navy under the Defence Ministry,” she said.

The committee also called on the Defence and Finance Ministries to maintain “strict financial discipline” to ensure the project cost remains below RM11.22 billion.

PAC chairperson Mas Ermieyati Samsudin

It further urged the Defence Ministry to ensure the delivery of all five vessels stays on schedule and within budget, while requiring contractor Lumut Naval Shipyard (Lunas) to maintain adequate contingency stocks of critical equipment to avoid delays caused by supply chain disruptions.

The remaining recommendations addressed Norway’s cancellation of its delivery of naval strike missiles (NSM) to Malaysia.

Mas Ermieyati urged Putrajaya to strengthen its mitigation efforts and diplomatic engagement to secure a fair outcome while safeguarding the country’s fiscal interests.

“The government should also make full use of peaceful negotiations or legal proceedings to claim appropriate compensation in accordance with the terms of the contract,” she added.

She warned that Norway’s decision to revoke export licences for the missiles could affect the LCS fleet’s combat capability, with the ships at risk of being delivered without their full armament.

LCS to retain key operational capabilities

In a separate parliamentary reply, Defence Minister Khaled Nordin said Lunas had assured the government that Norway’s decision would not affect the delivery schedule for the LCS vessels.

“As of May 31, the LCS project has recorded a total expenditure of RM8.457 billion, which is 76.2 percent of the total project value.

Defence Minister Khaled Nordin

“The current physical progress status is 78.1 percent compared to the planning target of 85.21 percent, with a difference of 7.11 percent,” he said in response to a question from PAS information chief Ahmad Fadhli Shaari.

Khaled said the ships would retain key operational capabilities even without the NSM system, including anti-submarine, anti-air, and electronic warfare functions, supported by a combat management system integrating radar and sensor capabilities.

“At the same time, the ministry, through the navy, is taking all necessary steps to ensure that the surface-to-surface missile capability of the LCS ships can be restored through the best possible solution,” he added. - Mkini

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