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Cabinet Unanimously Agrees to Proceed with LCS Procurement

KUALA LUMPUR: The Cabinet has unanimously agreed to proceed with the project to procure Cabinet unanimously agrees to proceed with LCS procurement

Defence minister Hishammuddin Hussein said the decision was taken at today’s Cabinet meeting, chaired by Prime Minister Ismail Sabri Yaakob.

He said the decision was made after taking into consideration two key factors, namely the LCS assets were much needed by the Royal Malaysian Navy (RMN), as well as there being 400 vendors involved in the project, with a financial implication of over RM4 billion.

“The LCS are definitely assets which are very much wanted and needed by the RMN not just for its modernisation under its transformation plan but, more importantly, to raise the armada’s preparedness as well as improve the country’s maritime security.

“I believe that today’s decision will further boost the morale and spirit of the RMN personnel to continue fighting for the country’s sovereignty,” he said in a statement.

On the 400 vendors involved, Hishammuddin said over 100 of them were companies owned by Malaysians, with 90% linked to Malaysian armed forces veterans.

Cabinet unanimously agrees to proceed with LCS procurement

The LCS programme is part of the RMN’s development plan aimed at strengthening the country’s naval assets, and all six ships are based on the Gowind design by French company Naval Group (formerly known as DCNS).

Besides that, Hishammuddin said there were several measures that the government needed to take, including holding negotiations with banks, vendors and the original equipment manufacturer (OEM) as well as the French government involving the design.

“At the same time, other agencies, including the Malaysian Anti-Corruption Commission (MACC), are also urged to expedite their roles to ensure every process runs smoothly,” he said.

He said the Cabinet had also set up a special governance committee chaired by the Treasury secretary-general and the defence ministry secretary-general to monitor the LCS project for the next six months and report the latest developments to the Cabinet each month.

“I wish to stress that the decision to continue with the LCS project does not mean those involved in wrongdoing in the project previously would get off scot-free. The MACC had remanded two CEOs previously and the MACC, too, will be urged to expedite its investigations.

“Anyone found guilty will be brought to justice,” he said.

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