BHIC Submarine Engineering Services (BSES), a subsidiary of Malaysia’s Boustead Heavy Industries Corporation (BHIC), has been authorised to expand its Scope of Work and raise the Contract Ceiling Price for In-Service Support Interim on two Scorpene submarines of the Royal Malaysian Navy (RMN) on Thursday (May 2nd).
The Letter of Acceptance (LOA), valued at MYR 43,600,000 (approximately USD 9.17 million), signifies a significant boost in the responsibilities and financial investment of BSES in supporting RMN's naval fleet. This move underscores Malaysia's commitment to enhancing its maritime capabilities and underscores BSES's pivotal role in fulfilling these objectives.
A formal contract between the Government of Malaysia and BSES is expected to be formalised and executed in the near future, solidifying the terms of this extension. The extension is anticipated to have a positive impact on the BHIC Group's financial performance for the fiscal year ending on 31 December 2024.
