Malaysia considers whether to stick or twist with LCS

The Malaysian Ministry of Defence (MINDEF) is mulling how to proceed with its troubled Maharaja Lela -class Littoral Combat Ship (LCS) programme.

None of the six LCS vessels on order from Boustead Naval Shipyard have been successfully completed, Defence Minister Datuk Seri Ismail Sabri Yaacob told parliament on 3 August.

LCS 1 is almost 60% completed, ahead of LCS 2 (48%), LCS 3 (43.75%), LCS 4 (36.49%) and LCS 5 (20%). Construction of LCS 6 is yet to begin.

This means that the overall programme is some 31 months behind schedule, Ismail Sabri said, and costs are spiralling beyond the original MYR9.13 billion ($2.16 billion) contract ceiling.

The LCS project faces a Cabinet-level review, with three options in play.

‘The first option is for the project to be continued by appointing Naval Group France as a rescue contractor… using the remaining contract ceiling to complete at least two LCS units,’ Ismail Sabri said.

Alternatively, Boustead Naval Shipyard would be required to complete ‘at least two LCS units’ within the remaining contract ceiling, he added.

The third option is to terminate the contract entirely, with the government stepping in the save the LCS programme.

Ismail Sabri said that saying that MINDEF does not intend to inject additional funds for Bousted Naval Shipyard to complete the LCS programme, despite a request from the shipbuilder.

However, the government could pay for the design rights and complete construction itself.

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