Auditor-General's Report: LCS project behind schedule again
The Auditor-General's report reveals that the Littoral Combat Ship (LCS) project in Malaysia is significantly behind schedule and facing implementation weaknesses. The project has undergone multiple contract revisions and faces risks regarding operational readiness.
Why it matters
The delays and cost overruns in major defense procurement projects raise significant concerns regarding government fiscal management and national security readiness.
PETALING JAYA: The littoral combat ship (LCS) project is running behind schedule again with weaknesses found in its implementation.
According to the Auditor-General's Report Series 2/2026 tabled in Parliament on Monday (Oct 5), the project was 7.55% behind schedule as of June 25 this year.
All five LCS vessels experienced completion delays ranging from 30 to 108 days, it added.
"The delay poses a risk to the earliest physical handover (PHO) of LCS 1, which was scheduled for Aug 26 this year, or the revised target date of Dec 26 this year, it read.
If the PHO takes place by the revised date, it said: "LCS 1 will be handed over without achieving full operational capability, as training and the weapons systems will not yet have been completed.
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