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Lumut Naval Shipyard is pivotal in Malaysia's maritime defense strategy, particularly through the Littoral Combat Ship (LCS) Program, overseen by CEO Azhar Jumaat since a 2023 governance shift. The shipyard targets to launch LCS1 in May 2024, LCS2 in May 2025, and a third vessel in early 2026.

As the only Malaysian shipyard capable of building warships, LUNAS is enhancing its operations through digital upgrades and sustainability initiatives. The shipyard is strategic for the government, aiming to expand its maritime industry role and establish a regional presence in the Asia-Pacific.