BHIC bags RM1.1bil contract from MinDef

KUALA LUMPUR: Boustead Heavy Industries Corp Bhd (BHIC) has secured a contract worth RM1.1bil from the Ministry of Defence (MinDef) to provide In-Service Support 2 (ISS 2) to the Royal Malaysian Navy (RMN) submarines.

BHIC said its wholly-owned subsidiary, BHIC Submarine Services Engineering Sdn Bhd (BSES) received a letter of award (LOA) from MinDef.

“The ISS 2 contract, valued at RM1.1bil, commences retrospectively from Feb 15, 2024 to Feb 14, 2029. BHIC expects it to contribute positively to the group’s earnings for the financial year ending Dec 31, 2024,” it said in a statement.

BHIC chief executive officer Feroz Razi Ramli said: “The confidence shown by the Government to BSES to continue providing ISS to RMN’s Prime Minister Class submarines demonstrates its trust in BHIC Group to maintain the nation’s military assets which are crucial to safeguarding its security and strategic interests.”

In March 2023, MinDef awarded BSES an Interim contract worth RM143mil to carry out ISS work on the submarines during which the company proved its ability by surpassing all performance targets set.

Boustead Holdings Bhd group CEO Izaddeen Daud said that the award and renewal of other high-value Government contracts to BHIC Group provide a positive outlook for BHIC Group’s earnings and stand testimony to its capability as one of the leading defense partners in Malaysia.

“BHIC is now poised to assume a more significant role in the defense industry by actively participating in comprehensive national defense initiatives and enhancing the supply chain within the sector, thereby solidifying our position as a key player in the industry’s future growth and development,” he added.

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BHIC , MinDef , Royal Malaysian Navy , submarines


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