KUALA LUMPUR: The Public Accounts Committee (PAC) has instructed the Defence Ministry (Mindef) and the Royal Malaysian Navy to submit written progress reports concerning the littoral combat ship (LCS) project every three months starting from May. This requirement is part of a broader strategy to enhance oversight of the long-delayed project, ensuring that any delays or new issues are identified and addressed promptly.

PAC chairman Datuk Mas Ermieyati Samsudin emphasized the importance of these reports, stating, "Mindef and the Navy must submit written progress reports... without fail... including the status of combat system integration tests, as the April 2026 testing phase is critical." This statement was made during a press conference held in Parliament on July 8.

In addition to the progress reports, the PAC has recommended that both Mindef and the Finance Ministry uphold strict financial discipline to keep the project's total cost within the established ceiling of RM11.22 billion. The committee urged Mindef to ensure that all five ships are delivered to the Navy according to the agreed timeline and budget. Furthermore, it advised contractor Lunas to maintain an adequate stock of critical equipment, such as radar systems, to avoid delays caused by international suppliers.

The PAC also highlighted the need for the government to reinforce mitigation measures and diplomatic efforts to achieve a fair resolution following Norway's cancellation of the export license for the Naval Strike Missile (NSM). They suggested pursuing compensation through negotiations or legal actions based on contractual terms.

Continuing its oversight, the PAC plans to monitor the LCS project closely after conducting a site visit to Lumut, Perak, on January 30 and holding proceedings on February 4 to evaluate its overall progress. Earlier, the PAC had summoned Mindef on June 23 for a comprehensive briefing regarding the implications of Norway's decision to revoke the NSM export license.

As of December, the overall physical progress of the LCS project reached 75.73%, with the first vessel, LCS 1, at 82.9%. LCS 1 successfully completed its first sea trial on January 28, achieving a speed of seven knots. However, its delivery has been postponed by four months to December of this year, while LCS 2 is now expected to be delivered in August next year. The schedule for LCS 3 to LCS 5 remains unchanged, with deliveries slated through to April 2029.

The PAC attributed the delay primarily to technical audit requirements imposed by France’s Naval Group, which necessitated rework on nearly 4,000 items, including the installation of an additional 50 kilometers of cabling on LCS 1. The contract value remains fixed at RM11.22 billion, with Lunas responsible for all additional costs arising from rework and refurbishment without further government funding.

Moreover, the report indicated that 170 major shipboard systems, including live gun firing and shock certification, still require testing before delivery. Regarding the NSM issue, Mas Ermieyati expressed concerns that Norway's decision to revoke the export license could impact the vessels' combat capability, increasing the risk of delivering the ships without their primary missile system. The PAC also noted that the Malaysian Anti-Corruption Commission has confirmed ongoing criminal investigations into the project, while governance investigations were completed in August 2023, leading to advisory recommendations for Mindef.