Malaysia adds funds to troubled littoral combat ship program

SINGAPORE — Malaysia is pumping more money into its troubled Littoral Combat Ship program, despite reductions in capabilities and scheduling delays.

The government announced the move during the Langkawi International Maritime and Aerospace Exhibition last week, signing its sixth supplementary contract with shipbuilder Boustead Naval Shipyard on May 26.

This latest contract will see Malaysia pay an additional $430 million for the ships, which are based on the Gowind-class frigate by France’s Naval Group. Malaysia will also reduce the number of ships it will receive under the revised contract from six to five, and accept an additional delay to the ships’ deliveries.

Under the new delivery schedule, Boustead Naval Shipyard will deliver the lead ship — KD Maharaja Lela — in 2026, seven years after the originally planned date. The company will deliver the final ship, KD Tok Janggut, in 2029, five years later than initially planned.

Malaysia’s Finance Ministry will take over the shipbuilder by setting up of a special-purpose vehicle to acquire Boustead Naval Shipyard from its parent company, Boustead Heavy Industries Corp.

Malaysia selected the Gowind design for its second-generation patrol vessel program in 2011, awarding a $1.96 billion contract to Boustead Heavy Industries for the six ships, with construction to take place in Lumut, Malaysia. The government subsequently renamed the effort as the Littoral Combat Ship program.

The lead ship, KD Maharaja Lela, launched in August 2017, but the program was soon plagued by construction delays and cost overruns. A parliamentary public accounts committee launched an investigation into the program, during which members visited the shipyard and interviewed a former defense minister, among other defense and company officials.

The committee revealed in August 2022 that work on the ships had completely halted by then. It also alleged that $300 million was misappropriated from the program, which led to fraud charges leveled against Boustead Heavy Industries’ former managing director, Ahmad Ramli Mohammad Nor.

More In Naval

New US Space Force jammers aim to disrupt China’s SATCOM signals

The Remote Modular Terminals, which disrupt adversary satellites by "yelling in their ear," as one official put it, are cleared for initial fielding,

Space Force must grow to counter China and Russia, lawmaker says

House Armed Services Chairman Mike Rogers, R-Ala., said the service is not sized to meet increasing threats from China and Russia.

SpaceX launches rapid response GPS mission

The effort, dubbed Rapid Response Trailblazer, was meant to demonstrate the ability to quickly plan and launch a mission in around six months.

Space Command strategy aims to boost commercial role in operations

The updated strategy, approved in November, focuses on SPACECOM’s core tasks and how commercial space capabilities fit within those areas.

ULA eyes annual mods to turn rocket stage into space interceptor

The fast-moving vehicle would be highly maneuverable and could be used to tow satellites or for counterspace missions, ULA CEO Tory Bruno told reporters.