Why have RM6 billion in LCS funds not yielded any delivered ships?

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RM6 Billion in LCS Funds Unaccounted for Without Delivered Vessels

Approximately RM6.083 billion has been disbursed by the Malaysian government to contractor BNS for the supply of six Littoral Combat Ships (LCS), yet none of these vessels have been completed. The original schedule stipulated that five of the six LCS should have been delivered by August 2022, highlighting a significant shortfall in project delivery against substantial financial commitment.
Substantial Funds Paid Without Project Completion

The Malaysian government has allocated and paid RM6.083 billion to contractor BNS as part of a larger RM9.128 billion contract. This contract, spanning from October 2013 to October 2023, was secured by BNS through direct negotiation. Despite this significant financial outlay, the core deliverable of the contract—the six LCS vessels—remains incomplete.
Original Delivery Schedule Missed

According to the initial project timeline, the delivery of the LCS was expected to be well underway. By August 2022, five out of the six contracted vessels were scheduled to have been completed and handed over to the Ministry of Defence. The current status indicates a complete failure to meet these critical milestones, with no vessels having been delivered to date.
Largest Defence Procurement Project Facing Delays

The LCS project represents the most substantial procurement in the history of the Ministry of Defence. The contract, awarded via direct negotiation, was intended to bolster the nation's naval capabilities. However, the project has become a focal point of public concern due to the extensive delays and the absence of any delivered assets despite the considerable funds already disbursed.

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Why have RM6 billion in LCS funds not yielded any delivered ships?

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