SHAH ALAM: Deputy Defence Minister Adly Zahari told Dewan Rakyat today that the additional time given to Boustead Naval Ship (BNS) to complete the five the LCS was one of the reasons for the increase in cost of the project.
He said the additional time given was part of the LCS sixth supplemental agreement signed at LIMA 2023 recently. Malaysian Defence post on that.
From the Star.
“If we look at it, the additional 83 months will add to the cost,” Adly told the Dewan Rakyat during the oral question and answer time on Thursday (June 8).
Apart from that, he said the variation orders and the additional specifications included based on the defence needs of the Royal Malaysian Navy (RMN) such as the surface-to-surface missile and Decoy Launching System was another factor leading to the additional cost.
“When we drafted the SA6, we included a term that the government can pay the original euipment manufacturer (OEM) directly through the Finance Ministry. These are the improvements we have made to the terms of the agreement,” he said while adding that there has been concerns on leakages to middlemen.
Malaysian Defence had previously written that no one knows that the exact cost for the LCS. And it is likely the RM11.2 billion announced will not be the end of it.
Malaysian Defence will post the full transcript of the Dewan Rakyat exchange once it is published on the Parliament website.
— Malaysian Defence