Mindef issues claims against BHIC for breach of submarine contract

Royal Malaysia Navy submarine KD Tunku Abdul Rahman, naval ship KD Sri Johor and the navy helicopter in formation during a training in 2018.

KUALA LUMPUR: Boustead Heavy Industries Corp Bhd (BHIC) said a joint venture company Boustead DCNS Naval Corp Sdn Bhd (BDNC) has received a letter from the Ministry of Defence (Mindef) claiming liquidated damages amounting to RM11.6mil and €6.46mil (RM31.2mil).

The claims are for the breach of obligations under the first supplemental contract of the In-Service Support (extended ISS contract) for two Royal Malaysian Navy submarines.