LCS project faces delays and combat capability risks, audit report finds

The 2026 Auditor-General’s Report has revealed that the Littoral Combat Ship (LCS) project is facing a 7.55 percent progress delay, with construction timelines lagging between 30 and 108 days as of June 25, 2026.

The report warns of a significant risk regarding the Physical Hand Over (PHO) of the first vessel, LCS 1. While the handover is targeted for late 2026, there are concerns that the ship may be delivered without full combat capabilities, as critical weapon systems, training, and integration remain incomplete.

Further complications arise from a timeline mismatch: while the main contract is set to expire in April 2030, supplementary contracts required for full operational readiness may not be finalized until December 2035. This creates a five-year gap where the vessels may lack essential combat functionality.

In Parliament, concerns were raised regarding the RM6.1 billion already paid toward the RM11.22 billion project. Political figures have questioned previous administrative decisions and the potential for technological obsolescence if the delivery of fully equipped warships continues to be deferred.