THERE will be no reduction in cost for the littoral combat ship (LCS) project despite the Malaysian navy receiving five units instead of the original six, Mohamad Hasan said.

The defence minister said the cost of the project will remain at RM9 billion, as previously approved.

“Due to the many variations from the original order and inflation, the price (to build a single ship) has (actually) increased,” he told the Dewan Rakyat this morning.

Mohamad was responding to a question from Nordin Ahmad Ismail (Lumut-PN), who asked if the government planned to reduce the cost after it was reported that the navy would only receive five LCS units.

Last month navy chief Abdul Rahman Ayob reportedly said the navy is set to receive five LCS units instead of six.

Rahman said this was agreed upon after the government had deliberated on whether it wanted to proceed with the controversial project.

Meanwhile Mohamad said the funds for the project had been used on parts to build the ships.

“I can confirm this after visiting the shipyard in Lumut recently.”

Mohamad had also previously said that his ministry is satisfied with the current project status, with one of the six ships expected to be ready next year.

The Public Accounts Committee, in its report on August 4 last year, said the government had paid RM6.083 billion to Boustead Naval Shipyard Sdn Bhd in a deal that was allegedly signed via direct negotiation, but not a single vessel had been delivered.

On October 2 last year, former defence minister Hishammuddin Hussein was reported as saying that the construction of the LCS project would resume as soon as negotiations end in December. – February 20, 2023.