Malaysian Cabinet to Decide on Fate of LCS Project

The delay in the delivery of the Royal Malaysian Navy's littoral combat ships (LCS) will be brought to the Cabinet to ascertain the best solution, said Defence Minister Datuk Seri Ismail Sabri Yaakob.

He said that the matter is crucial to determine the future of the project as well as the fate of 10,000 workers and vendors who are affected due to the delay."We will bring the matter to the Cabinet to get solutions. There are two options, the first of which is for Boustead Naval Shipyard Sdn Bhd (BNS) to have a new direction that will be presented in the Cabinet to enable the project to continue.

"If this does not obtain Cabinet approval, a new company will be appointed. So far, we are leaning towards the first option," he said.Ismail Sabri was speaking to reporters after witnessing a demonstration of the Fast Interceptor Craft at the RMN base here today.He said the Cabinet will come up with a decision soon. He also hoped that the issue on workers who have lost their jobs due to the delay would be resolved soon."We will look into all angles especially on the welfare of workers. As such, we suggest Boustead continue the project," he said.

Yesterday, Pangkor assemblyman Datuk Seri Dr Zambry Abdul Kadir had said about 200 vendors and contractors have shut down following the delay in the delivery of the LCS two years ago.He had said it was crucial for the LCS project to proceed so that vendors and workers can continue their work and avoid retrenchment.The LCS construction project, worth RM9.128 billion, was awarded to BNS by the government through the Defence Ministry. A total of RM6 billion has been paid for six ships.

However, to date, not a single LCS has been handed over to the RMN although the contract agreement, signed in January 2014, stipulates that the first vessel was due to be handed over to the government in April 2019.

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