Govt agrees to continue Littoral Combat Ship project, says Ismail Sabri

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

Article type: free
User access status:

Next In Nation

National Recovery Plan lacks clear strategy to flatten Covid-19 curve, says MMA
Hishammuddin to make working visits to Turkey, Egypt from June 17
It's 'rationale', not 'rational" – Art Harun rebuts word used in report on his comment on Parliament meeting
Duo held over bogus Covid-19 vaccines after report lodged by medical officer
Don’t belittle efforts of Perak MB over smartphone donations, says state Bersatu
Selayang Municipal Council worker claims trial to corruption charges
Perak BN welcomes King’s advice for Parliament, state assemblies to reconvene, says MB
Covid-19: Strict guidelines must be in place for Sarawak polls, says deputy CM
Sabah Bersatu urges cops to act against state PKR Youth chief over human trafficking allegations
Covid-19: 5,738 new cases recorded, Selangor still tops the list with 1,858

Stories You'll Enjoy