KUALA LUMPUR (May 10): Boustead Holdings Bhd says it is unable to share further information about the Littoral Combat Ship (LCS) project following the government's announcement on Friday that the project will continue despite previous delays.

Boustead said it will wait for official confirmation on the government’s approval before disclosing any of its plans.

"Expressing gratitude to the government for the continued trust for it to complete the project which has been halted since 2019, BHB (Boustead) is unable to share further information but will make the necessary announcements in a timely manner to Bursa Malaysia Securities Bhd, should there be any material information which falls under the Main Market Listing Requirements," it said in a filing with Bursa Malaysia today.

Last Friday, Senior Minister (defence) Datuk Seri Ismail Sabri Yaakob said in a statement that the government has agreed for Boustead group to continue with the project, following a cabinet meeting two days prior.

He said the continuation of the construction would save 1,600 workers comprising local people from losing their jobs and more than 400 vendors comprising Bumiputera SMEs.

The LCS construction project, worth RM9.128 billion, was awarded to one of Boustead's subsidiaries Boustead Naval Shipyard Sdn Bhd (BNS) by the Ministry of Defence in 2011, and the order was for six LCSs to be constructed for the Royal Malaysian Navy.

However, to date, not a single LCS has been handed over to the navy although the contract agreement, signed in January 2014, stipulates that the first vessel was due to be handed over to the government in April 2019. Nevertheless, it was reported that the government had already paid the company RM6 billion.

Ismail Sabri previously said the ministry was considering three options to resolve the delay in the delivery of six LCS units, as BNS had completed none of the orders.

The options were: the appointment of Naval Group France as a rescue contractor to complete at least two LCS units, the completion of at least two units by BNS with the remaining contract ceiling, or the termination of the contract with BNS.

In November last year, Boustead Heavy Industries Corp Bhd (BHIC) lodged a report with the Malaysian Anti-Corruption Commission (MACC) on possible irregularities in the project after it had conducted a forensic audit.