Official Press Release: The Littoral Combat Ship Project Will Continue

Referring to the issue of Littoral Combat Ship (LCS Project) procurement, the Ministry of Defence would like to announce that Boustead resumed the construction of the LCS which has been halted since 2019. The Cabinet meeting has also set some conditions that must be complied with by the Boustead Group. 

With the continuation of the construction by the Boustead Group, it will save 1,600 employees comprising locals and also more than 400 vendor companies comprising Bumiputera SMEs. If the construction of this LCS is not continued, it will have some negative impact on the Bumiputera workers and vendors involved. It will also impact the Lembaga Tabung Angkatan Tentera (LTAT) which is a shareholder in Boustead Holdings Berhad. 

In addition, indirectly, contributors who are members of the military will be affected if the project is not continued and even the bank that lends to this project will also be at a loss because Boustead Naval Shipyard is unable to repay the loan. 

For the record, Boustead Naval Shipyard is a state-owned company run by majority Malay Bumiputera. 

YBB DATUK SERI ISMAIL SABRI YAAKOB SENIOR MINISTER OF DEFENCE 

7 May 20212