SHAH ALAM: On the road again, LCS. The government has approved the restart of the RMN’s Littoral Combat Ship (LCS) project by Boustead Naval Shipyard (BNS), which had stopped since 2019. The approval was made by the Cabinet on May 5, says the Defence Ministry in a press release issued today.
The ministry said the approval was subject to conditions imposed on BNS though it did not specified the conditions imposed on the company nor any timelines on the completion of the project or any increases in cost.
A CGI of the LCS.
The release
KENYATAAN AKHBAR MENTERI KANAN PERTAHANAN
PEROLEHAN LITTORAL COMBAT SHIP (PROJEK LCS) DITERUSKAN UNTUK MEMPERKUKUHKAN KESELAMATAN PERAIRAN NEGARA DAN MENDOKONG
INDUSTRI PERTAHANAN NEGARA
Merujuk kepada isu perolehan Littoral Combat Ship (Projek LCS), pihak Kementerian Pertahanan ingin mengumumkan bahawa Mesyuarat Jemaah Menteri yang bersidang pada 5 Mei 2021 telah bersetuju untuk Kumpulan Boustead meneruskan pembinaan LCS yang telahpun terhenti pembinaannya sejak tahun 2019.
Menyuarat Jemaah Menteri juga telah menetapkan beberapa syarat yang perlu dipatuhi oleh Kumpulan Boustead.
Dengan penerusan pembinaan tersebut oleh Kumpulan Boustead, ianya akan menyelamatkan 1,600 orang pekerja yang terdiri daripada anakanak tempatan dan juga lebih daripada 400 syarikat vendor yang terdiri daripada PKS Bumiputera.
Sekiranya pembinaan LCS ini tidak diteruskan ia akan memberi beberapa impak negatif kepada para pekerja dan vendor Bumiputera yang terlibat.
Ia juga akan memberi kesan kepada Lembaga Tabung Angkatan Tentera (LTAT) yang merupakan pemegang saham di dalam Boustead Holdings
Berhad. Selain itu, secara tidak langsung pencarum yang merupakan anggota tentera akan menerima kesan sekiranya projek ini tidak diteruskan malah pihak bank yang memberi pinjaman kepada projek ini juga bakal kerugian
kerana Boustead Naval Shipyard tidak berkeupayaan membayar pinjaman.Untuk rekod, Kumpulan Boustead Naval Shipyard adalah merupakan sebuah syarikat milik kerajaan yang diusahakan oleh majoritinya anakanak Melayu Bumiputera.
YB DATUK SERI ISMAIL SABRI YAAKOB
MENTERI KANAN Pertahanan
7 Mei 2021
It interesting to note the release did not mentioned anything on RMN apart from the headline which says that it is meant to strengthen the maritime security of the country, which basically summed up how the politicians feels about the defence. Any how from previous reports, we know the project is likely to cost more than the RM9 billion ceiling when the contract was signed seven years ago. The deal was awarded to BNS in 2011 though. How much will it cost then to have six LCS and when all ships are commissioned? Your guess is good as mine!
For context please read my previous posts on the LCS
— Malaysian Defence
View Comments (36)
Hope all the best
Managing problem... ok because a lot vendors n worker, so no choice to keep u all alive. The cycles will never End. Until now, i still prefer option to get DCN involve n conditions is rehire all these worker only.... maybe cost will high but i can get a guarantee, it will Deliver! Anyway, no use to give comments because nasi already become bubur. Just pray we can get it on time and the ship is deliver as per the specs.
Yeah!
Enough is enough. Let this be the last n final time a contract to build new ships be given to Boustead. In future , tenders should be on an open basis to all qualified Malaysian shipyards n not to a GLC anymore.
Better still , just buy direct overseas as its for national security n interest.
My wild guess, govt will add more monies until 1 LCS cost us at least RM2 billion, using year 2021 exchange rate.
Here we go again😒
Good: I'm rejoicing that the LCS project is now underway. Our navy can finally get the modern frigates they truly deserve. Almost all our SEA neighbors are moving ahead of us. It's time to catch up.
Bad: I dread to know how much more $$$ we need to spend and be lost to waste & corruption.
Marhalim,
"It interesting to note the release did not mentioned anything on RMN apart from the headline..."
For politicians, important thing is,
1600 workers and families member vote.
400 vendors and families vote.
LTAT members and families vote.
TLDM assets do not vote. 😅
Election around the corner maybe? 🤔
Still am glad the LCS project is moving again.
@Steven Chong
Is it waste & corruption which stalled the project or due to budget constraints when the true cost was hidden? I am for the latter, and you would too once you understand Marhalim's cryptic comments in past articles.
One thing's for sure, these delays and stalls have definitely up the real cost even further.
Surely not another gun ship like the kedahs again aite? For sure the overall project cost will increase absurdly maybe as much as 10 to 12 billion but as long as they can deliver all 6 ships without another hiccup then they can proceed..But in no circumstances they should get another contract from the govt..Last hurrah for them