Hishammuddin: LCS mobilisation phase going as planned

KUALA LUMPUR: The mobilisation phase for the littoral combat ship (LCS) project is running smoothly, says Datuk Seri Hishammuddin Hussein (pic).

The Defence Minister said this phase, slated for June to December this year, involved a number of efforts by the government especially his ministry, the Royal Malaysian Navy, the Armed Forces Fund Board (LTAT) and Boustead Naval Shipyard Sdn Bhd (BNSSB).

"The mobilisation phase is running in line with the recommendations of various parties, including the Cabinet and Public Accounts Committee (PAC)," he said in a statement on Sunday (Oct 2).

ALSO READ: Hishammuddin: Mobilisation of LCS project expected to be completed by year-end

A number of matters were concluded in the first three months of the phase, he added.

"On the commercial side, two things are going on. BNSBB has concluded talks with 145 local vendors and 42 overseas original equipment manufacturers (OEMs).

"The local vendors and OEMs have pledged to support ... BNSBB to resume this project.

"Efforts to end the involvement of middlemen Contraves Advanced Devices (CAD) dan Contraves Electrodynamics Sdn Bhd (CED) are currently being pursued.

"It will enable BNSBB to negotiate with OEM and vendors directly. This can reduce the cost of ship equipment," he said.

BNSBB was currently negotiating with nine banking institutions to restructure its debt, Hishammuddin added.

ALSO READ: Handover of first LCS still within same timeline, says Hishammuddin

"We expect negotiations to be concluded within the mobilisation phase," he said.

According to Hishammuddin, detailed design was also being discussed with France's Naval Group.

"This is ... to ensure that anything decided upon will be able to meet the needs of the Navy as an end user.

"Naval Group (will) send its technical team to perform an audit on the detailed design in October," he said.

In terms of government to government arrangements, Hishammuddin said representatives from the French government have met him and provided a written commitment to resume and solve the LCS project.

"This is an important development and will help greatly, given that the majority of Naval Group is owned by the French government," he said.

ALSO READ: French govt has given commitment to prioritise LCS project, says LTAT CEO

Construction of the LCS would resume once negotiations had concluded and every agreement finalised within the mobilisation phase, he said.

"We expect the first LCS will be completed within two years.

"It is a realistic timeline as after the end of the mobilisation phase, all parties have 14 months to ensure that the ship is completed and on the water undergoing trials such as Harbour Acceptance and Sea Acceptance.

"This timeline must be adhered to by all stakeholders, especially BNSBB," he said.

As instructed by the Cabinet, Hishammuddin said a report on the negotiation process during the mobilisation phase will be tabled on schedule.

"As previously mentioned, the Navy has requested the acquisition of littoral mission ship (LMS) batch two while waiting for the LCS to be completed.

"The ministry has asked the Economic Planning Unit and the Cabinet to implement this project," he said.

In conclusion, all parties were not looking back but working hard to ensure the Navy had sufficient assets, Hishammuddin said.

"The ministry will continue to give its full cooperation in any investigation by the authorities," he said.

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Next In Nation

Stay united and prioritise the nation, says Nga
Appointment of Ahmad Zahid as DPM a betrayal of Pakatan voters, says Bersatu leader
Khairy congratulates newly-appointed successor, hopes she will uphold excellent public health system
I am honoured to be part of unity govt under Anwar, says Ewon on new ministerial appt
Cuepacs, MEF say Cabinet line-up possesses credibility, ability to work hard
Improve laws and women’s rights, says group
Sabah housewife loses over RM500,000 in love scam
Being appointed DPM a recognition for GPS, Borneo bloc, says Fadillah
Khaled helms Higher Education Ministry for a second time
Anwar hopes to restore economic confidence through new approaches in Finance Ministry

Others Also Read