SHAH ALAM: Show me the money. Defence Minister DS Ismail Sabri visited the Lumut naval base on Nov.15 where he spend some time being briefed on the RMN activities there apart from visiting the various navy units headquartered there. He also visited the Boustead Naval Shipyard Sdn Bhd, located adjacent to the naval base and Gading Marine Shipyard Sdn Bhd facility, also located in Lumut.
This is what the ministry’s post had to say about the BNS visit.
Seterusnya, beliau bersama delegasi telah dibawa ke Boustead Naval Shipyard Sdn. Bhd (BNSSB) untuk melihat dan meninjau perkembangan Kapal Littoral Combat Ship (LCS) serta beberapa kapal LCS lain.
Which is basically nothing really, even though the LCS is the biggest elephant in the room. The minister also did not touched on the project on his interview on Bernama regarding the budget. Perhaps it was not his fault as the interviewer had asked specifically on the MD530G helicopters instead of the elephant in the room. That said, it may well be the only thing that the officials had given the greenlight for the interviewer to ask the minister. My friend had this to say about the minister “Ismail Sabri had done nothing wrong so far as the defence minister as he had not done thing really.
Anyhow what this got to do with the title anyway? It is simple really. As you are aware BNS needs money to complete the project – some RM3 billion to complete the first two ships and another RM3 billion for the other four, according to this report.
Ismail had already said the ministry was waiting the decision from the Cabinet on whether or not to continue with the project. From this reports, we already know the reasons behind the delays into the project, its the money or the lack of it.
BNS cannot complete the project without the money it is asking and thats been the case for the last 32 months. Yes you heard about the technical issues with the ships – with people claiming its either RMN or BNS fault – but its really about the money. If they – BNS – got the money they are asking for of course, the technical issues could be resolved. Yes, its that simple, really. Will the extra allocation being asked will go higher than the RM9 billion ceiling price? Of course it will be, that’s the reason the current and previous governments are/were holding up the funds.
— Malaysian Defence
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View Comments (64)
Seperti yang kita tahu harga siling projek ni ialah RM9 bilion. Saya agak keliru disini dan harap ada pencerahan.
Berdasarkan apa yang saya baca di post ni BNS perlukan lagi tambahan RM6 bilion (3+3) untuk lengkapkan keenam-enam LCS.
Adakah tambahan RM6 bilion (3+3) ni termasuk dalam harga siling kontrak RM9 bilion atau di luar harga siling kontrak?
Last saya baca kerajaan dah bayar RM6 bilion jadi jika BNS perlukan lagi RM3 bilion ia masih dalam klausa kontrak kan untuk total RM9 bilion?
Cuma tambahan lagi RM3 bilion untuk next 4 LCS barulah di luar harga siling kontrak.
Reply
Yes all extra funds being asked by BNS will go above the RM9 billion ceiling allocation. I don't have the breakdown of which will break the ceiling but it will as I said in a previous post long ago
My my so technically 12 bill for 6 ship..easy money for them..considering 1bill goes kapush without a trace..6 bill already paid..3 bill more to complete the first 2 and additional 3 bill to complete the rest ..12 billion! 2 billion per ship..wow just wow
its just elementary calculations really.
in 2015 USD2.8 billion equals to RM9 billion.
but now in 2020 USD2.8 billion equals to RM11.8 billion.
That is why more money is needed.
Want those gowinds? we need to stump out those extra RM3 billion ringgit. If not, we need to have plan B for 6 new frigates of different type than the gowinds for less than the RM6 billion additional cost.
Is it because we delayed the purchase of the sub systems due to technical issue or monetary issue and since 2015 the Ringgit depreciated so much that those systems have basically triple the original price .. so the fault not entirely Boustead's ...
Reply
Yes and no, BNS, RMN and Mindef were working on the assumption of business as usual, that was disrupted by the 2018 general elections
Alternative buy...buy more drones including flying munitions. Ships are sitting ducks anyway
How to move forward with our frigate requirements
2 options from me
Option A
Option A RMK12 2021-2025 (USD2.0 billion)
6x Gowind SGPV LCS USD1400 mil (this is additional money in addition to RM6 billion already paid for to complete all 6 Gowinds)
2x MRSS USD300 mil (Based on RORO 2700 design. basic roro cost Eur55.5 mil)
16x FIC USD50 mil
8x NGLMS USD200 mil (based on damen FCS 5509)
3x Offshore OSV USD40 mil (used 80-90m length - MCM, survey, salvage, PASKAL support, as auxillary ship)
Option A RMK13 2026-2030 (USD2.0 billion)
3x Gowind SGPV LCS USD1200 mil (gowind no 7, 8, and 9)
1x Scorpene USD500 mil (Scorpene no 3)
10x NGLMS USD200 mil (based on damen FCS 5509)
1x Autonomous MCM system USD60 mil
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Option B
Option B RMK12 2021-2025 (USD2.0 billion)
6x Hyundai HDF-2600M USD800 mil (plus all components from gowind project)
2x MRSS USD300 mil (Based on RORO 2700 design. basic roro cost Eur55.5 mil)
16x FIC USD50 mil
5x EC225LP USD60 mil (used - maritime utility helicopter)
4x Lynx ASW upgrades USD120 mil (2 additional used + 2 conversion from existing TLDM units)
2x AS355NP USD5 mil (used - utility and PASKAL support)
8x NGLMS USD200 mil (based on damen FCS 5509)
2x Autonomous MCM system USD120 mil
3x Offshore OSV USD40 mil (used 80-90m length - MCM, survey, salvage, PASKAL support, as auxillary ship)
2x Support tanker USD180 mil (Brand new Malaysia, STM Turkey NFM 158m design. BM5 BM6 replacement, as auxillary ship)
Option B RMK13 2026-2030 (USD2.0 billion)
6x Hyundai HDF-2600M USD1000 mil
1x Scorpene USD500 mil Scorpene no.3
10x NGLMS USD200 mil (based on damen FCS 5509)
2x Autonomous MCM system USD120 mil
16x FIC USD50 mil
2x Floating base USD40 mil (used - tanker ship conversion semisubmersible, as auxillary ship)
1x Heavilift RORO USD10 mil (used - additional transport - as auxillary ship)
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I personally prefer option B
@ taib
" Ships are sitting ducks anyway "
Why i always say of just for patrol, buy patrol ships for MMEA that costs less than LMS or what not.
to be able to strike back in a conflict, underwater assets would be much more survivable than surface ones.
So true to the words then, money make the wok go round 😅 Curious to know if those earlier payment ever reflected in any of the Audit General report? Personally I would prefer the government to end this "saga", pay up, get all the 6 ships deliver and follow up with an investigation, which as always, will not find the reason or culprit behind this. 😂 Anyway, we're used to paying premium price for our military procurement.
RM3 billion to complete 2 hulls and RM3 billion to complete the remainder 4 hulls. BNS smoking some serious pot or pulling a fast one. The first 2 hulls which are ready costs the same as 4 uncompleted hulls of which 3 are not even in existence. BNS is just making up numbers.
Paying RM6 billion or approximately USD1.43 billion without commitments from the shipyard they will get it done this time is wasteful.
Take the money and upgrade the NGPV, or go to Indonesia and contract them to build the Martadinata class frigates.
Or get more LMS. At the rate of progress, the Chinese would have constructed 6 more LMS before the first LCS ever sets sail.
This figures last time includes sub system, weapons and everything or what? Why every time involved in this projects alway in trouble...