BHIC says lower contract price to buildships for China won’t impact margins

Companies that provide short-term consumer loans at high interest rates are on the increase in countries like Indonesia and the Philippines as many people struggle to get advances through traditional channels such as banks.

KUALA LUMPUR: Boustead Heavy Industries Corp Bhd (BHIC) says the lower contract price to build the four littoral mission ships (LMS) with the Chinese government will not have an impact on its margins.

“Under the earlier agreement, the first two LMS will be built in China, while the remaining two will be built in Malaysia. But, for cost-saving purposes, all four vessels will be built and delivered in China,” said BHIC executive deputy chairman and managing director Tan Sri Ahmad Ramli Mohd Nor.