LCS1 physical delivery target revised to April 2027
Lunas said Norway’s cancellation of a missile-system export licence affected the schedule, while further contract variation order delays could push delivery back again.
Lumut Naval Shipyard Sdn Bhd (Lunas) said April 2027 is now the target for handing over the first littoral combat ship (LCS1) to the Royal Malaysian Navy (RMN). It warned that continued delays involving the contract variation order could mean another postponement.
The shipbuilder attributed part of the schedule disruption to Norwegian authorities cancelling an export licence covering the surface-to-surface missile system. After that decision, it said export controls, including the International Traffic in Arms Regulations (Itar), barred delivery of a ship carrying the affected missile launcher.
Lunas said it had formally advised the Defence Ministry (Mindef) about consequences for costs, technical matters and scheduling. It described these as beyond the scope and control of its original contract, and said the revised timetable needed to be considered against the programme’s technical, regulatory and contractual complexities.
Separately, the company said several complementary contracts essential for physical delivery were outside its scope. Mindef had to enter into those contracts directly with the original equipment manufacturers.
For the Integrated Logistics Support and Test Assistance package, Lunas said a Letter of Acceptance (LOA) issued in August 2025 was followed by contract finalisation and signing in August 2026. The intervening delay affected implementation of the package’s training programme, it said.
Regarding proposed Liquidated and Ascertained Damages (LAD), Lunas said liability needed to be established through contractual and legal procedures. It said the auditor general’s report was not a final decision on contractual liability, while maintaining that it respected the audit findings and recommendations.
