SEVERAL government and opposition Members of Parliament have proposed that the government establish a Royal Commission of Inquiry (RCI) to investigate the delays in the Royal Malaysian Navy’s (RMN) Littoral Combat Ship (LCS) project.
This follows the Auditor-General’s Report (LKAN) 2/2026, which found that the LCS project was running 7.55 per cent behind schedule as of June 25.
This delay poses a risk to the physical handover (PHO) of LCS 1 and is expected to impact the PHO of LCS 2 through LCS 5.
The delay reportedly stems from the unavailability of the anti-ship missile (NSM) launcher system, following the permanent revocation of its export permit by the Norwegian government.
Mohd Sany Hamzan (PH-Hulu Langat) proposed the establishment of an RCI to investigate the LCS project, which was originally scheduled for completion in 2019.
"We called for the establishment of this LCS project because, in the past, we had submarines that couldn't submerge and jets that couldn't fly; and now we have the LCS, the initial project for which was supposed to be completed in 2019," he said.
He made these remarks during the debate by Datuk Seri Ikmal Hisham Abdul Aziz (PN-Tanah Merah) on the motion regarding the Auditor-General's Report (LKAN) 2/2026 in the Dewan Rakyat today.
Ikmal Hisham supported the proposal while recommending that the construction of the LCS be limited to just three units, rather than the five originally planned.
"To date, the government has paid RM8.3 billion to LUNAS (Lumut Naval Shipyard), yet not a single ship has been handed over for commissioning by the Royal Malaysian Navy (TLDM)," he said.
Ikmal Hisham stated that the government must also issue a stern warning by imposing a surcharge—under Section 18 of the Financial Procedure Act 1957—on the Project Monitoring Committee (PMC) for failing to exercise proper oversight of the LCS project, resulting in a loss of public funds.
"I propose that this surcharge be imposed on everyone who failed to carry out their entrusted duties, especially all members of the PMC.
"At the same time, Liquidated Ascertained Damages (LAD) must be enforced against LUNAS without compromise," he said. Meanwhile, Datuk Ahmad Amzad Mohamed @ Hashim (PN-Kuala Terengganu) stated that the public requires an explanation regarding the public funds spent on the LCS project.
"This project involves public money and a substantial amount. Questions have been raised for years, and people are wondering what is going on.
"Therefore, I agree that we need to conduct an in-depth investigation into this matter. If necessary, establish a Royal Commission of Inquiry (RCI)," he said.
The proposal to establish the RCI is also supported by Chong Zhemin (PH-Kampar). "We need to set up an RCI to investigate the matter thoroughly," he said. – October 7, 2026
