KUALA LUMPUR: The Defence Ministry must establish a 'threshold line' over the Littoral Combat Ship (LCS) project to indicate the project's failure as their last resolution.
The proposition was made by Datuk Seri Ikmal Hisham Abdul Aziz (PN-Tanah Merah) during debate session in the mid-term review of the 12th Malaysia Plan in the Dewan Rakyat today.
Ikmal who is a former deputy defence minister said this while questioning the much-needed LCS that was originally scheduled to be completed in but has not shown any convincing developments.
He said while LCS is the largest project with the most additional agreements in history, the future of the project was dim.
He questioned the relevance of the government entrusting the project to Bousted Naval Shipyard (BNS), a contractor company which failed to meet the deadline for the ships' completion.
"Whether you like it or not, this LCS project has failed. Perhaps the best course of action from the government now is to listen to the Navy with an open mind.
"What kind of message is the government sending to domestic and foreign shipping industry players by continuing to allow this deception to happen?
"What is the rationale behind the government's decision to increase the ceiling cost of LCS ship construction from the original figure of RM9.12 billion for six ships to RM11.2 billion for only five ships?
"Isn't this just a bad case for the development prospects of the local shipbuilding industry in the long run?
"This is as outsiders see that they can build LCS ships cheaper and faster than the construction by BNS which is owned by a local company," he said.
Regarding his remark, Ikmal said it was not meant to cast doubt on the ability of local engineers under BNS who work earnestly but believe in the talent of locals in building advanced ships.
Therefore, he proposed a new solution that is fairer about the issue than the government's existing recovery plan which allegedly does the same thing but expects different results.
"Yes, the LCS 1 ship is already at the 70 per cent completion stage. Perhaps the additional budget amounting to RM2.2 billion that was announced by the government last April during LIMA 2023 must be fully utilised.
"Meanwhile, the LCS 2 ship and beyond should be given to the original contractor, the French Naval Group, with the option and terms of the contract so that they use any parts that have been purchased or completed by the BNS to reduce construction costs.
"After the LCS 2 and LCS 3 ships are completed by the French Naval Group, it is appropriate for the government to consider the need for the construction of the LCS 4 and 5 ships to return to the BNS.
"At least the LCS 2 and 3 ships will be completed by the French Naval Group within three years at the market cost as proven in the Egyptian Navy and also the United Arab Emirates (UAE)," he said.