KUALA LUMPUR, July 8 — The Littoral Combat Ship (LCS) project reached 78.1 per cent physical completion as of May 31, compared with the planned target of 85.21 per cent, representing a shortfall of 7.11 per cent.
The Defence Ministry (MINDEF) said the project, which involves the construction of naval assets for the Royal Malaysian Navy, had incurred a total expenditure of RM8.457 billion, or 76.2 per cent of the project's overall value.
“The Norwegian government's decision to revoke the export licence for the Naval Strike Missile (NSM) system to Malaysia will not affect the delivery schedule of the LCS vessels, as guaranteed by Lumut Naval Shipyard to MINDEF,” it said in a written reply published on the Parliament website.
MINDEF was responding to Pasir Mas MP Ahmad Fadhli Shaari's query on an update to the LCS project, the total amount of public funds spent as of May 31, the additional funding required to complete the project, and the government's assurance that the first vessel would be delivered to the Navy by December.
It added that the LCS would retain its key capabilities, including anti-submarine warfare, anti-air warfare, electronic warfare, and a combat management system that integrates these capabilities with the ship's radar and sensor systems.
“At the same time, the ministry, through the Navy, is taking all necessary measures to restore the Surface-to-Surface Missile capability of the LCS fleet through the best available solution,” MINDEF said.
Norway had previously revoked the export licence for the NSM system to Malaysia, citing its national security interests.
Following the decision, MINDEF issued a notice of demand worth about RM1 billion to the defence company involved.
Defence Minister Datuk Seri Mohamed Khaled Nordin had earlier said the issue would not affect the delivery timeline for the Navy's LCS vessels, which are currently under construction.
