Anchored
in Engineering Excellence
W
e last spoke to Lumut Naval Shipyard (LUNAS) in October 2025; since then, it has been a defining period for Malaysia’s shipbuilding and ship repair industry. “We are witnessing an important evolution from building platforms to building enduring national capability,” introduces Ir. Azhar Jumaat, Group CEO. 2 | APAC Outlook Issue 82
Indeed, the launch of the National Defence Industry Policy (NDIP) earlier this year provides a strong strategic foundation for the industry and reinforces Malaysia’s commitment to a more resilient, self-reliant defence industrial ecosystem. It accelerates localisation, strengthens local supply chains, nurtures highly skilled talent, and creates more opportunities for
Malaysian companies to participate in high-value defence programmes. Equally encouraging is the transformation of international collaboration. Today, partnerships are no longer centred solely on procurement; they increasingly focus on technology transfer, capability development, knowledge exchange, and building sustainable industrial capacity. For LUNAS, this shift is reflected in
LUMUT NAVAL SHIPYARD MANUFACTURING
Anchored
in Engineering Excellence Continuing its seafaring journey at the helm of Malaysia’s maritime defence ambitions, Lumut Naval Shipyard is charting a course in sovereign capability. Group CEO, Ir. Azhar Jumaat, updates us on how the company has navigated the past year Writer: Rachel Carr | Project Manager: Josh Whiteside
its strategic collaborations. “During Defence Services Asia 2026, we signed seven memoranda of understanding (MoUs) with both international and Malaysian companies, namely HD Hyundai Heavy Industries, Hull Vane, Ocean Infinity, Labuan Shipyard and Engineering, G7 Marine Technology, MTC Engineering, and a tripartite with MHV Holdings and Sillinger S.A.S.
“Our collaborations represent more than commercial ventures; they reflect our commitment to building a stronger maritime ecosystem by combining global expertise with Malaysian capabilities,” Ir. Azhar expresses. Through these alliances, LUNAS aims to accelerate knowledge sharing, strengthen local participation, and create opportunities for Malaysia to
progressively enhance its sovereign capabilities whilst remaining connected to the global defence and maritime communities. “I believe Malaysia is at an important inflection point as it drives a sustainable maritime industrial ecosystem that develops worldclass engineering talent, propels innovation, creates high-value employment, and strengthens APAC Outlook Issue 82 | 3
LUMUT NAVAL SHIPYARD MANUFACTURING
LUNAS is people-driven
national security whilst contributing meaningfully to economic growth,” he emphasises.
BUILDING TALENT, STRENGTHENING CAPABILITY Since we last spoke to LUNAS, the company has grown in both people and capabilities. “The past year has been an important journey for us, not only through our programme’s 4 | APAC Outlook Issue 82
progress, but also by strengthening our organisation and building the expertise needed to support Malaysia’s defence industry aspirations,” declares Ir. Azhar. “Our people have been central to this. We have continued to build Malaysian talent through international knowledge transfer, technical collaboration, and hands-on experience gained from one of Malaysia’s most complex naval
shipbuilding programmes.” These developments have strengthened LUNAS’s engineering, systems integration, and shipbuilding capabilities, whilst building a team increasingly confident and capable of delivering complex defence solutions to global standards. “We are not only building expertise but also nurturing the next generation of Malaysian maritime and defence professionals who are confident,
capable, and ready to take on greater responsibilities. Our greatest investment will remain in our people, because they are the foundation of our long-term growth and success,” he continues. Equally, LUNAS continues to work closely with its strategic partners, including Naval Group and Thales, to deepen technical capabilities whilst progressively increasing Malaysian participation across the programme.
Each step strengthens the company’s local shipbuilding capability, bringing it closer to greater self-reliance. Diversification is also an important part of LUNAS’s long-term growth strategy. As such, entering the oil and gas sector and working on exploration and drilling vessels is an advantageous move for the company. “Whilst defence remains our core business and strategic priority, we are
also looking at opportunities across adjacent maritime sectors where our capabilities can create greater value for the industry and the nation,” Ir. Azhar explains. “Our experience in complex shipbuilding, advanced maritime engineering, fabrication, systems integration, and project management provides a strong foundation to support opportunities beyond naval platforms, including offshore energy, APAC Outlook Issue 82 | 5
LUMUT NAVAL SHIPYARD MANUFACTURING
“Our objective is to build a more resilient and sustainable business portfolio by maximising our world-class facilities, growing our talent base, and creating new opportunities for Malaysian maritime to thrive” – I R . A Z H A R J U M A AT, G R O U P C E O , L U M U T N AVA L S H I P YA R D
specialised commercial vessels, and other maritime solutions.” The capabilities developed through LUNAS’s Littoral Combat Ship (LCS) Programme have strengthened its technical expertise, operational discipline, and workforce. These competencies are highly transferable and position the company to contribute across a wider maritime ecosystem. “Our objective is to build a more resilient and sustainable business portfolio by maximising our worldclass facilities, growing our talent base, and creating new opportunities for Malaysian maritime to thrive,” acknowledges Ir. Azhar. Ultimately, diversification enables LUNAS to strengthen its role as a trusted partner whilst continuing to support Malaysia’s ambition to develop a competitive and sustainable maritime industry.
FROM SHIPYARD TO SEAPOWER Whilst there is a slight delay due to cancellation of missile from Norway, LUNAS is on track for the physical handover of its first frigate, LCS1, 6 | APAC Outlook Issue 82
COULD YOU TELL US ABOUT THE CHALLENGES LUNAS FACED DURING ITS TRANSFORMATION? Ir. Azhar Jumaat, Group CEO: “I want people to understand that LUNAS’s journey hasn’t been easy. Transforming an organisation and delivering a programme of this complexity takes time, commitment, and perseverance. Along the way, we faced significant pressure, difficult decisions, and moments when people doubted and questioned our capabilities and commitment. “We recognise that a national project of this importance comes with high expectations and close public scrutiny. That is part of the responsibility that comes with delivering a capability that matters to the country. “What has kept us moving forward is our shared purpose, people’s resilience, and commitment to fulfilling the trust – ‘amanah’ – placed in us. “Throughout this journey, we stay focused on what matters most: strengthening our capabilities, improving how we work, and delivering with integrity. We don’t take shortcuts because we believe delivering the right capability safely and responsibly is paramount. “Every achievement we have reached today reflects the dedication and commitment of our people, support of our partners, and continued trust of our stakeholders. The journey may not have been easy, but we have stayed true to our values and remained committed to doing things the right way.”
LUNAS at NDIP launch
Hull Vane and LUNAS sign MoU for naval applications in the Asia Pacific region
LUMUT NAVAL SHIPYARD MANUFACTURING
LCS1 sea trial phase
to the Royal Malaysian Navy (RMN) in April 2027, marking a historic milestone as the first locally built warship. “The upcoming physical handover of the first LCS will be a significant milestone not only for us, but also for Malaysia’s defence industry and maritime capability,” Ir. Azhar proudly states. However, this achievement does not stand in isolation; it is built on a strong 8 | APAC Outlook Issue 82
foundation. LUNAS previously demonstrated its shipbuilding capability by successfully constructing, integrating, and delivering the Kedah-class Next Generation Patrol Vessels (PV 3 to 6), all in its own shipyard. That programme proved Malaysia’s core shipbuilding capability. However, that capability is being taken to a new level.
“The LCS Programme moves our shipyard from building patrol platforms to building complex, stateof-the-art surface combatants,” he emphatically tells us. “We have come a long way to reach this point. This achievement reflects years of commitment, collaboration, and perseverance involving the RMN, the government, our strategic technology partners, trust and support from
LCS4 and LCS5 construction phase
our stakeholders, and the many Malaysians who have contributed to the programme.” The LCS Programme is one of Malaysia’s most complex defence schemes, requiring advanced engineering, complex systems integration, and close coordination across multiple stakeholders. More importantly, this milestone demonstrates Malaysia’s growing capability to build, integrate, and
sustain a modern naval combat platform by combining international expertise with locally developed skills and experience. “Beyond the delivery of the ship itself, the greatest value of the LCS Programme lies in the capability it has built within our people and our industry,” Ir. Azhar outlines. “Thousands of Malaysians, including engineers, naval architects, technicians, project managers, local
suppliers, and industry partners, have gained valuable knowledge and experience throughout this journey. This is an important investment in Malaysia’s human capital and industrial capability.” For LUNAS, it means building a stronger foundation for the future, strengthening Malaysia’s maritime industry, enhancing self-reliance, and developing capabilities that will support the nation for years to come. APAC Outlook Issue 82 | 9
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LUMUT NAVAL SHIPYARD MANUFACTURING
Visit by His Excellency Marc Abensour, Ambassador of France to Malaysia
A STRONG MARITIME FUTURE ON THE HORIZON For 2027 and beyond, LUNAS’s priorities remain clear – to deliver on its commitments, continue strengthening capabilities, and position the company for long-term growth. “Our immediate focus is to deliver the LCS Programme successfully. We remain committed to working closely with the RMN, the government, and our partners to ensure every stage meets the required standards of quality, safety, and operational readiness. “Ultimately, this is not just about delivering ships but delivering the capability the RMN requires and the nation deserves,” Ir. Azhar resolutely says. At the same time, LUNAS will continue strengthening as an organisation by improving processes, 12 | APAC Outlook Issue 82
PREPARING TO DELIVER MALAYSIA’S NEXTGENERATION NAVAL CAPABILITY LUNAS looks forward to the upcoming Multi-Role Support Ship (MRSS) programme, which the RMN has long awaited. “We are ready to work alongside the selected international shipbuilder to deliver part of the MRSS here in Lumut,” Ir. Azhar reveals. “To support this programme, we are embarking on a significant shipyard infrastructure and capability enhancement initiative, scaled to the MRSS, including upgrading our shiplift capability to handle larger, heavier vessels.” In parallel, LUNAS is digitalising operations, further strengthening workforce development, and entering the unmanned surface vessel (USV) segment. “Our Langkawi shipyard has extensive experience in designing and building aluminium vessels, and we are building on this expertise in partnership with Ocean Infinity Australia, a recognised leader in marine robotics, including opportunities to fabricate their vessels locally. “Concurrently, we are working with local industry and research institutions to build domestic USV capability, so that Malaysia can design, build, and sustain these systems itself,” he points out.
Ir. Azhar recognised as CEO of the Year at the Business Leader of the Year Awards 2026
13-metre utility boat locally built by LUNAS
Naming and launching of LCS3
LUNAS named Nation’s Pride – Leader in Naval Shipbuilding, Maritime Innovation, and Nation Building at The BrandLaureate Awards 2025
“Our collaborations represent more than commercial ventures; they reflect our commitment to building a stronger maritime ecosystem by combining global expertise with Malaysian capabilities” – I R . A Z H A R J U M A AT, G R O U P C E O , L U M U T N AVA L S H I P YA R D
embracing digital solutions, enhancing productivity, and further developing engineering and shipbuilding capabilities. “We want to build a more efficient and agile organisation that is ready to take on more complex maritime projects in the future,” reports Ir. Azhar Jumaat. “Beyond defence, we will continue exploring opportunities across the wider maritime sector, including commercial and specialised vessels. We aim to
build on the capabilities we have developed and create a sustainable maritime industry that contributes to Malaysia’s economic and industrial growth.” Meanwhile, the company will demonstrate its capabilities at a premier event in the near future – the Langkawi International Maritime and Aerospace Exhibition (LIMA’27), taking place in April. “LUNAS is looking forward to participating in LIMA’27, where we plan to showcase LCS1 as a
representation of Malaysia’s growing maritime and defence capabilities. Bringing LCS1 to LIMA will be an important milestone for us,” Ir. Azhar excitedly concludes. As LUNAS continues to invest in its workforce and deliver increasingly complex vessels, it builds on more than four decades of experience, helping Malaysia navigate an innovative, resilient, and self-reliant maritime future.
Tel: (+603) 2181 8104 / (+603) 2181 6954
www.mylunas.com.my
APAC Outlook Issue 82 | 13
Corporate Office: Tel: (+603) 2181 8104 / (+603) 2181 6954 www.mylunas.com.my
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