Navy chief Mohd Reza Mohd Sany hoped that the construction of the littoral combat ships (LCS) will continue early next year.

He said the project was still in the "mobilisation phase" which is expected to conclude in December.

"I was informed that negotiations (between the contractor) and the original equipment manufacturers as well as vendors are making progress.

"We expect construction to resume early next year," Reza (above) said in Tanjung Pegelih, Johor today, according to Sinar Harian.

The six-month "mobilisation phase" is part of Putrajaya's scheme to get the LCS project back on track.

According to a Public Accounts Committee’s (PAC) investigation, the project was stalled by contractor Boustead Naval Shipyard Sdn Bhd's (BNS) due to cash flow problems and vendors not being paid on time.

Reza explained that once BNS completes its negotiation process with the vendors, it will be scrutinised by the committee monitoring the project and the cabinet will have to give a final greenlight.