The Malaysian Strategic Marine Association (Mastra) sees the restructuring of the littoral combat ship (LCS) project as a golden chance to restore and enhance Malaysia's tarnished marine environment in general.
Mastra also suggests that the parties involved appoint company directors with competence and integrity and that "an appointments committee be established to approve appointments to important and strategic positions as an action to strengthen governance structure," the association said in a statement.
The LCS project, which is reported to be Malaysia's largest defence acquisition in history, came under severe criticism last year after the PAC disclosed that none of the six ships had been completed despite Putrajaya having already paid RM6.08 billion to Boustead Naval Shipyard Sdn Bhd (BNS), a subsidiary of Boustead Holdings Bhd (BHB).
Six vessels of the Maharaja Lela class LCS were ordered, and five were supposed to be delivered by August of last year, but not a single one had arrived.
According to BHB, the total cost of the LCS project has been revised to RM11.2 billion, up from RM9 billion previously. This comes after BNS signed a sixth supplemental contract for the project with the government on May 26.
BHB chairman Datuk Nazim Rahman said the agreement covers the project handover and governance in repairing the LCS project, among other things.
Nazim said the agreement is the result of a comprehensive review involving various options and all aspects of the project by various ministries and agencies under the government and BNS, with the sole purpose of the contract being to resurrect the LCS project in accordance with the Royal Malaysian Navy's (TLDM) Armada Transformation Plan.
In a Bursa filing, BHB said all design and construction activities for the five naval ships resumed with the signing of the contract.
It said the first vessel will be delivered and fully tested in August 2026, while the fifth ship is expected to be delivered in April 2029.
"The total contract price is revised to RM11.2 billion following, among others, the approved change of specifications and extension of time. The terms of payment vary from milestone activity to progress of works reflecting the various elements in the contract, based on weightage to the design, equipment, construction, and trials, as well as commissioning," said BHB.
BHB previously stated that a new monitoring committee would be formed to assure the project's completion and avoid repeating past failures. The committee will be co-chaired by the Treasury and Defence Secretaries-General.