Kuala lumpur: The main contractor for the LRT3 project is facing a significant financial penalty, amounting to RM474.8 million, due to delays in the project's completion. Transport Minister Anthony Loke revealed that this penalty has been calculated based on the project's Liquidated and Ascertained Damages (LAD) clause, with a rate of RM2.7 million imposed for each day of delay.

According to BERNAMA News Agency, the delays have been calculated from July 10, 2025, the expiration date of Extension of Time No. 2, to December 31, 2025, totaling 174 days. During a session in the Dewan Rakyat, Loke emphasized that the main contractor is fully aware of this penalty. Prasarana Malaysia Berhad, the project owner, has received assurances from the contractor that all outstanding issues will be addressed promptly.

Loke's remarks came in response to a question from Syahredzan Johan (PH-Bangi) concerning the LAD imposed on Setia Utama LRT3 Sdn Bhd as of December 31, 2025. The inquiry also questioned whether the delay was due to Siemens failing to deliver satisfactory software on time. Loke confirmed that while Siemens' delay in providing the signaling system software was a factor, other issues also contributed to the project's overall delay.

Key contributing factors include delays in conducting essential testing for system packages, such as the communications system and the System Integration Test (SIT), which has now been completed. Additionally, there were failures recorded during the Fault Free Run (FFR) trials. Loke noted that Prasarana Malaysia Berhad is now focused on concluding the remaining FFR testing, which involves eight train sets.