BUSINESS

BHIC SECURES RM1.1 BILLION CONTRACT FOR RMN SUBMARINE SUPPORT

15/06/2024 12:41 AM

KUALA LUMPUR, June 14 (Bernama) -- BHIC Submarine Services Engineering Sdn Bhd (BSES), a wholly-owned subsidiary of Boustead Heavy Industries Corporation Berhad (BHIC), has received a Letter of Award (LOA) from the Ministry of Defence to provide In-Service Support 2 (ISS 2) services to the Royal Malaysian Navy (RMN) submarines.

BHIC chief executive officer Feroz Razi Ramli said the award demonstrated the Malaysian Government's confidence in BSES and BHIC's capability to complete the project on time, within budget, and meeting customer requirements.

“The confidence shown by the Government towards BSES in continuing to provide ISS services to the RMN submarines is a vote of trust in the BHIC Group to maintain military assets that are crucial for national security and strategic interests,” he said in a media statement tonight.

He added that the awarding of the contract was proof of the company's ability and efficiency in providing maintenance services for RMN submarines, ensuring they could be operated safely and efficiently to protect national waters.

“It is also a significant achievement for a local company to maintain and implement ISS on RMN submarines,” he said.

The ISS 2 contract, valued at RM1.1 billion, is retroactively effective from Feb 15 this year until Feb 14, 2029, and BHIC expects the contract to contribute positively to the company’s financial year ending Dec 31.

In March last year, the Ministry of Defence, representing the Malaysian Government, awarded BSES an interim contract worth RM143 million to carry out ISS work on RMN submarines. Throughout the contract period, BSES demonstrated its capabilities by achieving all set goals.

Meanwhile, Boustead Holdings Berhad chief executive officer Izaddeen Daud said the award of the ISS 2 contract and the renewal of high-value government contracts for the BHIC Group showcased its ability as a key strategic defence partner in Malaysia.

“BHIC is ready to play a bigger role in the defence industry through involvement in national initiatives and expanding the supply chain in the defence sector. This will further strengthen the company's position among industry players in contributing to the development and growth of a more sustainable defence industry,” he said.

-- BERNAMA

 

 

 

 


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