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BHIC Subsidiary Gets RM78 Million Submarine Support Contract

KD Tun Razak during her trials in the Mediterranean prior to her commissioning in 2010.

SHAH ALAM: BHIC subsidiary gets RM78 million submarine related contract. Boustead Heavy Industries Corp Bhd’s (BHIC) wholly-owned subsidiary has been awarded a contract worth RM78.14 million from the Ministry of Defence (Mindef) for the upkeep of submarine facilities for the Royal Malaysian Navy.

In an announcement to Bursa Malaysia, BHIC said its BHIC Submarine Engineering Services Sdn Bhd (BSES) received the letter of acceptance from the Ministry on April 7 for the two-year job that will be in effect from Jan 1, 2021 until Dec 31, 2022.

KD Tun Abdul Razak at LIMA 17.

The Company wishes to announce that on 21 April 2021, BHIC Submarine Engineering Services Sdn Bhd (“BSES”) (Company No: 200301092901), a wholly owned subsidiary of BHIC, has accepted the Letter of Acceptance dated 7 April 2021 from the Ministry of Defence Malaysia representing the Government of Malaysia, awarding BSES a contract for the Submarine Facilities Upkeep for the Royal Malaysian Navy (“Contract”) at a contract value of Ringgit Malaysia Seventy Eight Million, One Hundred Forty One Thousand, Four Hundred and Forty Only (RM78,141,440.00) for a contract period of twenty four (24) months from 1 January 2021 until 31 December 2022. A formal contract between the Government of Malaysia and BSES will be finalised and executed at a later date.

RMN submarine seen here with a USN SSN. Picture taken in 2011

It is unclear what submarine facilities that BSES is currently upkeeping. I am guessing that the company is the one maintaining the submarine simulators at the Kota Kinabalu naval base though I must admit I could be wrong completely.
The bridge of KD Tun Razak as the submarine conduct operations during Ramadan in june, 2016, TLDM picture

BSES is not the same subsidiary of BHIC – Boustead DCNS Naval Corporation Sdn Bhd (BDNC) which is still appealing the liquidated damages claimed by the Defence Ministry related to its refit, in-service and extended in service contracts for the two Perdana class submarines. In its latest annual report, BHIC said the government has yet to make a decision on their appeals.

— Malaysian Defence

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Marhalim Abas: Shah Alam