KUALA LUMPUR, May 19 — The main contractor for the LRT3 could face penalties exceeding RM800 million due to prolonged delays in the project’s final stages, Transport Minister Anthony Loke said.
The liquidated and ascertained damages (LAD) against Setia Utama LRT 3 Sdn Bhd will only be finalised upon completion, with enforcement handled by Prasarana Malaysia Berhad.
Delays have reached 291 days, with penalties nearing RM790 million as of April 2026. The 37.8km line, linking Bandar Utama to Johan Setia.
Faced setbacks due to signalling and system integration issues during testing. While physical construction is largely complete, final commissioning remains ongoing.
Loke stressed that penalties will not be arbitrarily waived, adding that contractors must bear the financial burden.
The project, initially slated for September 2025, is now expected to begin operations later this year pending final system approvals.
