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MINISTRY OF DEFENCE, MALAYSIA
2020
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KUALA LUMPUR, Aug 3, 2020 - The Ministry of Defence (Mindef) is considering three options in relation to the direction of the littoral combat ship (LCS) project, which has been been delayed, said its Minister Dato’ Sri Ismail Sabri Yaacob.

He said that, as at July 31, none of the six LCS ships had been successfully completed by Boustead Naval Shipyard Sdn Bhd (BNSSB). 

Following that, a memorandum would be presented to the Cabinet after the ministry’s top management made a final review of the documents in the near future, he added.

The first option is for the project to be continued by appointing Naval Group France as a rescue contractor through a Deed of Assignment with BNSSB using the remaining contract ceiling to complete at least two LCS units.

As for the second option, the project is continued by BNSSB with the remaining contract ceiling to complete at least two LCS units,” he said while winding up the debate on the motion of thanks for the Yang di-Pertuan Agong's royal address for his ministry in the Dewan Rakyat, today.

He said that the third option is the termination of the contract with BNSSB and the ministry starting efforts to save the project.

The overall work progress status of the project was 56.67 per cent compared to the original plan of 85.73 per cent, a delay of 31.1 months (29.06 per cent), he said.

He said the ministry did not intend to inject additional funds to complete the LCS, instead BNSSB was asked to use the remaining allocation to continue the project.
He added that the current progress status for LCS 1 is at 59.79 per cent; LCS 2 (48.09 per cent); LCS 3 (43.75 per cent); LCS 4 (36.49 per cent) and LCS 5 (20 per cent) while LCS 6 has yet to start construction.