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LCS, LMS Batch 2 and Radome

A graphic of the Hisar class OPV. Two of this OPV is expected to enter Turkish Navy service. The OPV is a derivative of the ADA class corvette. ASFAT.

SHAH ALAM: The Dewan Rakyat in its sitting on November 23 passed the Defence Ministry budget for 2024 which is RM19.7 billion. This was simply procedural – the Dewan must pass all the agencies and ministries budget individually – even though the 2024 budget has been passed earlier.

Anyhow as part of Dewan Rakyat procedure, members of parliament were given the time to pose questions on the budget to the Defence Minister, prior to the approval vote. DS Mohamad Hasan was given 25 minutes to answer the questions. For the full transcript please check the Dewan Rakyat website.

Thales Ground Master 400 Alpha. Thales

On the question on the long-range radar contract, Mohamad told the Dewan Rakyat the radome for the GM400 long-range radar will be supplied by Thales, the manufacturer.

Kubah itu kalau dibina di sini, dia
mahal. Jadi, apa yang kita lakukan ialah kita, atas nasihat daripada pihak pembekal, bahawa
kita mengimport modem ataupun kubah tersebut daripada luar negara daripada benua
Eropah dan ia dapat menjimatkan kosnya sebanyak RM10 juta dan kita terus pasang
mengikut spesifikasi dan ianya daripada OEM, Tan Sri Pengerusi ya

On the LCS, Mohamad said the increase in cost was due to the cost of the missiles (though he did not say which missiles, LCS is equipped with SSM and SAM)

Kalau kita tengok dalam kita punya, PAC punya laporan itu, yang RM2 bilion itu
dengan secara jelas telah pun PAC terangkan apa dia tambahan tersebut. Dia bukan
tambahan kerana cost overrun. Tambahan kerana kita— dulu semasa kita membuat projek
LCS ini, kita belum lagi identify ataupun kenal pasti missile mana yang kita nak pakai.
Jadi, kita telah kenal pasti dan itu sahaja, combatant itu sahaja, missile itu sahaja,
RM1.029 bilion. Lepas itu lagi, kos insurans banyak. Kos design. Macam-macam lagi, Dato’
Yang di-Pertua

The first summary of the PAC report on the LCS from June to October 2023. Note the section which detailed the cost increase.

His statement differed from the Public Accounts Committe (PAC) report which stated that cost increase of RM2 billion was due to design, insurance and warranty costs for equipment already delivered. According to a testimony the additional cost for the missiles was only RM103 million.

Mohamad also acknowledged that the cost of the LCS project will be around RM13.2 billion, once, it is fully taken over by Ocean Sunshine Bhd, a Ministry of Finance Inc. company. Malaysian Defence was the first to highlight this fact.

Dato’ Sri Ikmal Hisham bin Abdul Aziz [Tanah Merah]: Yang Berhormat Menteri,
fasal LCS lah. Sebenarnya hari ini saya tak sentuh langsung LCS, yang sentuh LCS, Ipoh
Timur. Tetapi apabila Yang Berhormat MENHAN bangkitkan tentang LCS ini dan saya bila
dengar kata, “No problem, tak ada masalah”, sebenarnya saya lagi risau. Sebab apa Yang
Berhormat Menteri? Ini kajian yang telah saya buatlah.
Mengikut laporan terkini PAC, hutang terkumpul BNS kepada vendor adalah
sebanyak RM848.45 juta. Hutang BNS kepada vendor. MOF juga, sebelum MOF hendak—
jadi MOF juga perlu selesaikan hutang ini untuk memulakan LCS. Jadi kalau nak selesai—
nak mulakan Projek LCS ini balik, kena bayar ini. RM848.45 juta.
Secara tak langsung, kalau kita pegang kepada jawapan MENHAN dalam Dewan
tempoh hari, kos RM2.1 bilion tempoh hari yang kononnya tidak melibatkan recurring cost
campur hutang BNS kepada BHSC. Ingat ya. Hutang BNS ke BHSC sebanyak RM389.4 juta
dan campur hutang BNS kepada vendor termasuk kepada Naval Group untuk luluskan detail
design, sebanyak RM848.45 juta. Kalau saya campur-campurkan Yang Berhormat MENHAN,
ia dah jadi RM13.2 bilion. Jadi, kos projek sekarang untuk lima kapal bukan lagi RM11.2 bilion
iaitu sekarang ini kalau kiraan sudah jadi RM13.2 bilion. Jadi sebenarnya, terus-terang saya
katalah.
Orang kata inilah trust deficit. Saya tak nampak yang satu kapal pun boleh siap sebab
kos sekarang dah melambung, lebih daripada RM12.1 bilion. Dah jadi sekarang RM13.2
bilion. Jadi, sebab itulah saya harap Yang Berhormat MENHAN, saya tahu ini legasi tetapi
legasi yang MENHAN terpaksa pikul dan tanggung.

Saya harap perkataan “no problem” itu betul-betul no problem. Saya nampak ada
problem. Terima kasih.

Dato’ Seri Utama Haji Mohamad bin Haji Hasan: Pengerusi, semua perkiraan yang
disebut oleh Tanah Merah tadi, semua dah dimasukkan perkiraan Dato’ Yang di-Pertua ya,
sebelum kita buat innovation dan juga menyerahkan ataupun pengambilan alih oleh OSB,
kepunyaan milik Kementerian Kewangan tersebut. Itu semua telah pun dikenal pasti dan
ianya akan diselesaikan oleh pihak Kementerian Kewangan, insya-Allah

On LMS Batch 2, Mohamad said due diligence on the selected shipyards has been conducted and the matter will be finalised by the Finance Ministry.

RMN officers poring over the model of the ADA class at LIMA 2023. Malaysian Defence picture

Perolehan LMS Batch 2, ini daripada YB Bagan Serai. Pihak pengguna TLDM telah
mendapatkan request for proposal (RFP) daripada 11 syarikat pembina kapal dari beberapa
negara. Daripada 11 RFP yang diterima, lapan syarikat pembina kapal telah memberikan
maklum balas terhadap RFP tersebut. Susulan itu, pihak TLDM telah melaksanakan penilaian
kepada tawaran tersebut.
Hasil penilaian tersebut, pihak TLDM telah mengenal pasti beberapa pembina kapal
daripada Turkiye yang menepati spesifikasi yang diperlukan oleh TLDM. Oleh itu,
kementerian telah mengangkat perkara ini kepada Jemaah Menteri pada 20 Ogos 2023 dan
kerajaan telah meluluskan perolehan kapal Littoral Mission Ship Batch 2 (LMS Batch 2) untuk
dilaksanakan menerusi pendekatan government-to-government Tan Sri Yang di-Pertua, iaitu
G2G dengan negara Turkiye. Status terkini, kementerian sedang buat due diligence terhadap
syarikat yang diluluskan oleh kerajaan dan perkara ini akan diangkat kepada Kementerian
Kewangan untuk dimuktamadkan, insya-Allah.

Dearsan C92 corvette. Dearsan.

Mohamad also acknowledged that the ministry was aware the RMN capability gap due to the delays to the LCS. So much so it had approached a country to buy a newly completed ship but it was rebuffed. He did not name the country, but I believed it may well be Turkey, Pakistan or Ukraine.

Dato’ Seri Utama Haji Mohamad bin Haji Hasan: Tan Sri Yang di-Pertua, itu
sebabnya sehingga kami pergi merata tempat untuk membeli kapal yang dah siap. Begitulah
urgency-nya, begitulah kehendak kami untuk kita mempertahankan perairan negara kita.
Tetapi malangnya kapal-kapal yang dah siap semua dah berpunya. Sehingga kami memujuk
sebuah negara tersebut bagi kami kapal tersebut, kami bayar sikit lebih tak apa, tetapi dia
kata tak boleh. Itu adalah hasrat, bagaimana hasrat untuk kita menjaga perairan dan benteng
pertahanan negara kita Puan Yang di-Pertua. Terima kasih.

— Malaysian Defence

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Marhalim Abas: Shah Alam

View Comments (114)

  • Actually why evaluate 11 proposals if they are only keen on Turkish designs or will only do G2G with Turkey? Why not solicit RFP just from Turkey? Is this a case of RMN may want something else but are being told to choose only from Turkey?

  • 5 LCS frigate (Gowind) and 3 LMS corvette (Ada). Total of 8 new combatant ship addition. Plus 2 old Lekiu frigate and 2 old Kasturi corvette so RMN will have 12 combatant (frigate / corvette) in the future. Okay, its better than nothing.

  • Radome cheaper from overseas?

    We have plenty of expert composite radome manufacturers. One of it is CTRM.

    Also the details of LCS Gowind project. A lot of the latest explanation that does not tally with previous details.

    On the missile, I believe we need to spend extra to buy the VL MICA NG, as the NSM has been fully paid for.
    https://www.navalnews.com/event-news/lima-2019/2019/04/lima-2019-kongsberg-started-production-of-nsm-anti-ship-missiles-for-malaysia/

    This would also be the opportune time to decide if we want to have a common MERAD missile with LCS Gowind.

    The reply from MENHAN on looking at readymade ships reinforces the fact that the LCS Batch 2 need is really because to make up for the LCS Gowind delay, and the want for new hulls right now. Signing for newbuild LCS Batch 2 now will not have those ships delivered before the 1st LCS Gowind touches the water, making the LMS Batch 2 exercise moot. So is the LMS Batch 2 something really needed by TLDM?

    Until our politicians really include APMM (and not just TLDM) in their maritime security plans, we will have big issues to secure our waters. Our main challenge right now is the blatant encroachment by Chinese Coast Guard in Malaysian maritime zones. We cannot tend to this issue just by using TLDM and buying TLDM ships. Solving this issue using resources given to APMM will be much better option in the overall scheme of things.

  • From what I understand, the LMS Batch 2 is definitely from Türkiye. Did I read that correctly?

    Maybe the RMN wanted Türkiye or Ukraine to transfer one of theirs to Malaysia but that was blocked. Cannot be the Pakistani ones because they are too big.

  • For our peacetime maritime security scenario, do we really need LMS Batch 2 Corvettes?

    I am of the opinion that it is not needed

    To support 6 large ships always at sea off sabah and sarawak (to monitor Chinese Coast Guard ships plus ASW surveillance of the Spratlys), plus 1 each off east and west coast of the peninsular, quantity as per pictured below would be needed
    https://pbs.twimg.com/media/F_nBAO1bEAA8GbP.jpg
    All large OPVs & Frigates to be operational at sea for at least 30 days at a time.
    with other near shore areas covered by LMS-X, NGPC, new 25m PC, FIC and RHFB.

    To have 1 ship always at sea, we usually will need 3 of the same, so that:
    1 operational at sea
    1 return from operations/maintenance/rest
    1 training/standby/ready to go to sea

    We can easily achieve 18 large OPV + 3 OSV Rescue/Tow/Patrol ships for APMM for a budget as low as USD 400 million spent in this and next RMK (RMK12 2021-2025 and RMK13 2026-2030). APMM would be the primary service for the day to day security of Malaysian Maritime Zone.

    A leaner TLDM with 10 Frigates, 6 Scorpene Submarines and 24 LMS-X would take up the deterrence side of Malaysian Maritime Security scenario. When out at sea, a Gowind frigate would sail with at least 2 LMS-X that acts as loyal wingman/distributed lethality node/ASW multistatic sensors towing cheap towed sonars such as the Kraitsense/SeaSerpent system
    https://www.malaysiandefence.com/pac-report-on-lcs-october-9-2023/

    All of this able to be achieved within the current levels of development budget.

  • That HISAR class is seriously armed for an OPV. How can they possibly afford 3, let alone a total of 8 on the current budget?

  • If the corvettes from Turkiye is mostly unarmed and FFBNW like the Kedah class due to the low budget, I don't see why we should bother with the LMS Batch 2.

    Buy cheaper OPV for MMEA instead.

  • Transfer of ready made ships?

    There was a rumor on the Italian PPA OPV/Frigates, but those are way above the LMS Batch 2 budget.

  • How many million times must it be said. Ships dont get build by a click of the button and war doesnt happen only when everyone is ready. How are you expecting the transition from peacetime to wartime to happen?