KUALA LUMPUR (Bernama): The government has agreed that the Boustead Group will continue with the Littoral Combat Ship (LCS) project that has been delayed since 2019 with conditions to be complied with by the company, says Senior Minister Datuk Seri Ismail Sabri Yaakob.
The Defence Minister said this was decided at the Cabinet meeting on Wednesday (May 5).
He said the continuation of the construction project would protect 1,600 local workers from losing their jobs and more than 400 vendors comprising Bumiputera SMEs.
"If the construction of this LCS is not continued, it will have a negative impact on the workers and the Bumiputera vendors involved.
"It will also affect the Armed Forces Fund Board, which is a shareholder in Boustead Holdings Bhd," he said in a statement Friday (May 7) night.
Ismail Sabri also said that if the project was not continued, it would indirectly affect the contributors who are military personnel and the bank that gave the loan to this project would also suffer losses because Boustead Naval Shipyard could not afford to pay the loan.
It was reported that the Defence Ministry had conducted an in-depth investigation into the failure of Boustead Naval Shipyard Sdn Bhd, a subsidiary of Boustead Holdings, to supply six LCS for the Royal Malaysian Navy. - Bernama