KUALA LUMPUR, Oct 20 — Lumut Naval Shipyard Sdn Bhd (Lunas) remains committed to delivering the first littoral combat ship (LCS1) to the Royal Malaysian Navy (RMN), with the target for physical delivery revised to April 2027.
Lunas said the revised delivery timeline for LCS1 should be viewed in the context of the programme’s overall technical, regulatory and contractual complexities, and the ship’s delivery schedule was affected by the cancellation of the export licence for the surface-to-surface missile system by the Norwegian authorities as well.
Following the decision, Lunas was no longer permitted under international export control regulations, including the International Traffic in Arms Regulations (ITAR), to deliver a ship equipped with the missile launcher system in question.
Lunas said it had formally informed the Defence Ministry (Mindef) of the technical, cost and scheduling implications arising from the development, which fell outside the scope and control of the company’s original contract.
The company also explained that several critical complementary contracts required for physical delivery were not included in Lunas’ existing scope and had to be contracted directly by Mindef with the original equipment manufacturers.
In addition, the Letter of Acceptance (LoA) for the Integrated Logistics Support and Test Assistance package was issued in August 2025, but the contract was only finalised and signed in August 2026.
Lunas said the delay had affected the implementation of the training programme, which formed an important part of the package’s scope.
On the proposed imposition of Liquidated and Ascertained Damages (LAD), Lunas said any determination of contractual responsibility must be made through the prescribed contractual and legal mechanisms, and that the Auditor-General’s Report should not be regarded as a final determination of contractual liability.
The company said the audit was conducted based on information provided by Mindef and the RMN, while respecting the report’s findings and recommendations.
Lunas reaffirmed its commitment to delivering an LCS that is safe, capable and mission-ready to strengthen the RMN’s operational readiness. However, the target for physical delivery in April 2027 could be pushed back further if the Contract Variation Order continued to be delayed. — Bernama