PAC concerned over delay in construction of LCS [Updated]

KUALA LUMPUR: The Public Accounts Committee (PAC) has expressed its concern over the continued delays in the construction of the Royal Malaysian Navy's littoral combat ship (LCS), following the latest report from the Defence Ministry.

PAC chairman Datuk Mas Ermieyati Samsudin said during the follow-up action proceedings, the committee was informed that as of December last year, the project was 86 days behind schedule, achieving only 67.28 per cent completion compared to the new timeline set by the ministry, which is 68.77 per cent.

"Furthermore, PAC was also informed that the issue of detailed design has yet to be finalised by the ministry with France's Naval Group," she told a press conference held at the parliament building today.

Mas Ermieyati said the follow-up action proceedings with the ministry were held on Jan 24.

Present was Defence Ministry secretary-general Datuk Seri Isham Ishak and Boustead Naval Shipyard (BNS) chief executive officer Capt (Rtd) Azhar Jumaat.

During the press conference, Mas Ermieyati also informed that owing to the acquisition of BNS by Ocean Sunshine Bhd, which is owned by the Minister of Finance Incorporated, on Aug 18, 2023, the former Boustead Heavy Industries Corporation Bhd-owned BNS contractor has been renamed Lumut Naval Shipyard (Lunas).

She said the public can read the follow-up actions and PAC comments by visiting

In December 2011, the Defence Ministry awarded an RM9 billion contract to Boustead Naval Shipyard Sdn Bhd for six ships as part of the Royal Malaysian Navy's fleet renewal plan.

A contract was eventually signed in July 2014. BNS would build the six ships with the help of the French naval company DCNS, beginning 2015.

The first vessel was slated to be delivered by April 2019, and the five ships were to be handed over in six-month intervals until 2023.

However, none had been delivered.

In 2018, the short-lived Pakatan Harapan government formed a special committee to investigate the contract, which eventually discovered that over RM6 billion had already been paid out from the total contract amount even before a single vessel was delivered.

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