LCS turnaround could define Anwar’s leadership, analysts say

Anwar Ibrahim could use the successful completion of the littoral combat ship (LCS) project to demonstrate his administration’s governing ability and distinguish it from Umno’s record, analysts say.

Ahmad Zaharuddin Sani Ahmad Sabri of Global Asia Consulting said a successful delivery of the project would show that Anwar’s administration can resolve longstanding problems rather than merely keeping the unity government together.

“Political stability means very little if the government is stable but its projects remain unstable,” he said.

He said delivering the vessels with financial discipline and stronger procurement governance would allow Anwar to distinguish his administration from those of the past without directly criticising coalition partner Umno.

However, Zaharuddin said inheriting a problem-laden project did not absolve the prime minister of responsibility for turning it around.

He said that, since Anwar was also finance minister, he was well placed to monitor the shipbuilder’s work and ensure the project keeps to clear timelines.

Lumut Naval Shipyard (Lunas) completed the project’s detailed design in August 2024, with a formal handover conducted the following month, according to the company.

In an Oct 19 statement, Lunas said it was continuing to fulfil its contractual obligations while keeping the government informed of issues affecting project costs and delivery timelines.

It also said it had used contractual mechanisms to address matters outside its control, highlighting supporting contracts handled directly by the defence ministry and Norwegian missile export restrictions.

The first ship is now targeted for physical handover in April 2027.

On Oct 26, defence minister Khaled Nordin acknowledged delays in finalising certain contracts and implementing changes requested by the ministry, while maintaining that construction work was also behind schedule.

Zaharuddin said Anwar should put in place a delivery framework that clearly assigns responsibility and sets deadlines for outstanding decisions, backed by independent oversight of project progress and costs.

“Lunas should not be penalised for delays genuinely caused by unresolved government decisions, just as the defence ministry should not be expected to accept substandard construction merely to meet a political deadline,” said Zaharuddin.

He said ministers, officials and the shipbuilder’s management must answer for shortcomings within their control, regardless of coalition sensitivities.

“Political stability should never become political immunity,” he said.

Meanwhile, political analyst Mazlan Ali of Universiti Teknologi Malaysia called for empowered coordination between the finance and defence ministries, with additional funding tied to independently verifiable construction milestones.

He also stressed the navy’s importance in the technical acceptance process, saying compliance with its operational requirements must remain free from political interference.

Mazlan said completing the project would demonstrate the effectiveness of the Madani administration’s governance reforms, proving it could rescue a troubled national undertaking.

However, Zaharuddin cautioned against confusing the handing over of vessels with achieving full operational capability, and called for independently verified milestones covering sea trials, systems integration and naval acceptance.

He proposed quarterly public reports on project progress, expenditure and outstanding issues, supported by independent assessments tabled in Parliament.

While Umno could legitimately share credit as a member of the unity government, Zaharuddin said Anwar’s leadership would ultimately be judged on whether his administration succeeds in resolving the project’s longstanding problems.

“Umno may have to answer for how the LCS controversy began.

“But Anwar will have to answer for how, and when, it ends,” he said.

Subscribe to our newsletter and get news delivered to your mailbox.