LRT3 Set for June 2026 Launch, Contractor Faces RM2.73 Million Daily Penalty for Delays

Photo: NST. The long-delayed LRT3 Shah Alam Line is now expected to begin operations by June 2026, with final testing currently underway, Transport Minister Anthony Loke confirmed in the Dewan Negara.

The 37.8km rail line, connecting Bandar Utama in Petaling Jaya to Johan Setia in Klang, will feature 25 stations and key interchange points at Bandar Utama (MRT Kajang Line) and Glenmarie (LRT Kelana Jaya Line). 

"Once operational, it is projected to serve around 67,000 commuters daily, improving connectivity across Petaling Jaya, Shah Alam and Klang," Loke said.

However, before trains can start carrying passengers, several technical hurdles must be cleared. The delay, Loke stressed, is not due to cost-cutting measures but unresolved signalling and system stability issues discovered during fault-free run (FFR) testing and commissioning. 

"So far, 14 out of 22 train sets have completed trials, with the remainder still undergoing testing. After all trains pass the FFR stage, the Land Public Transport Agency (APAD) will conduct final inspections before approval for operations," he added.

The project’s timeline has shifted multiple times. It was initially slated to open in September 2024, then pushed to December 2025, and now June 2026 following software and system-related issues identified during testing.

Beyond delays, LRT3 has also faced scrutiny over its rising cost. Launched in 2016 with an initial price tag of RM9 billion, the figure later ballooned to RM31.7 billion after previously excluded costs including consultancy fees, operational expenses and interest during construction.

In 2018, the government revised the scope, shelving five stations and cancelling one, which brought the cost down to RM16.63 billion.

Subsequently, five stations which consist of Tropicana, Raja Muda, Temasya, Bukit Raja and Bandar Botanik were reinstated, adding RM5.3 billion to the project and bringing the total cost to RM21.93 billion.

As for accountability, the project carries liquidated ascertained damages (LAD) of RM2.73 million per day for delays, equivalent to 0.024% of the total contract value. 

The main contractor, Setia Utama LRT3, a unit of Malaysian Resources Corporation Berhad (MRCB) will be responsible for the compensation, although the final amount will only be determined once the project is fully completed.