KUALA LUMPUR – The cabinet’s decision to continue with the Littoral Combat Ship (LCS) project is in the interest of the navy, not to protect the contractors.
Defence Minister Datuk Seri Ismail Sabri Yaakob said the government and navy’s interests were taken into consideration and prioritised through the decision.
“The statement by former defence minister Mohamad Sabu that the cabinet made the decision to protect the contractor is untrue, but as a responsible government, the decision took into consideration current situations, the capabilities of the contractor, and the economic impact.
“I view Mohamad’s statement regarding the government’s decision about the LCS procurement seriously,” he said in a statement yesterday.
Ismail said an in-depth study on all aspects of the project has been conducted and the cabinet found that the project brings more benefits to the government and Malaysians if continued.
“The government has spent RM6 billion and if it is stopped, the money will not be returned fully and the government would have to spend even more to appoint a new contractor.
“All this will take a long time and the project will be delayed, which can affect our naval preparedness,” he said.
Ismail said the government’s decision to carry on with the project will not only save the jobs of 8,000 workers, but also those of hundreds of local vendors and contractors.
He said Boustead Naval Shipyard Sdn Bhd had submitted a detailed plan early this year to continue the project, which showed its commitment and willingness to complete it, and the cabinet agreed in principle to allow Boustead to carry on with it.
“The next step is for the government to inform Boustead officially about the decision, along with the project implementation plan.
“The detailed design of LCS is 96% complete and is expected to be completed by the end of 2022. In fact, the naval group is still assisting Boustead in completing the project,” he said. – Bernama, May 12, 2021
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