LCS project delayed 7.55pc, putting first ship handover at risk — Auditor General
KUALA LUMPUR: The Littoral Combat Ship (LCS) project was delayed by 7.55 per cent, putting the physical handover (PHO) of the first ship, at risk, according to the Auditor General's Report 2/2026.
The Auditor General's Report for 2026 revealed that the Littoral Combat Ship (LCS) project has been delayed by 7.55 percent, potentially jeopardizing the handover of the first ship. This delay ranges from 30 to 108 days, threatening the initial scheduled handover of LCS 1 on August 26, or the revised target of December 26. When fully completed, LCS 1 would lack training and weapons systems, rendering it less capable than intended.
The project's readiness ultimately hinges on a supplementary contract, which cannot be finalized until December 2035, five years after the main contract's expiration on April 25, 2030. This delay also impacts the handover schedules for LCS 2 to LCS 5. The interim audit, conducted to evaluate the management of the LCS project, considered both physical and financial progress, contract management, and payments according to contract terms and regulations.
The Auditor General's Report 2/2026, containing 15 documents, was tabled in Parliament today, aligning with the National Audit Department's recommendation from October 9, 2023.
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