BHIC Secures RM1.1 Billion Contract for Support Services of Royal Malaysian Navy Submarines

(DEFENCE SECURITY ASIA) — Boustead Heavy Industries Corporation Bhd (BHIC) has clinched an in-service support 2 performance-based contract for the Royal Malaysian Navy (RMN) Prime Minister Class Submarines worth RM1.1 billion.

The maritime and defence solutions provider said its wholly-owned subsidiary, BHIC Submarine Engineering Services Sdn Bhd (BSES), has accepted the letter of award from the Ministry of Defence dated June 5, 2024, awarding the contract to BSES.

“A formal contract between the government of Malaysia and BSES will be finalised and executed at a later date,” it said in a filing with Bursa Malaysia today.

BHIC said the contract will contribute positively to the group’s earnings for the financial year ending Dec 31, 2024.

However, further details on the support service contract were not provided.

 

The two “Scorpene” class submarines, KD Tunku Abdul Rahman and KD Tun Abdul Razak, belonging to the country, were commissioned into the Royal Malaysian Navy (RMN) in 2009 and are currently operating from the RMN base in Kota Kinabalu.

The first submarine, KD Tunku Abdul Rahman, was launched on October 23, 2007, in Cherbourg, France, while the second submarine, KD Tun Abdul Razak, was launched on October 8, 2008, in Cartagena.

The Prime Minister Class submarines are based on the design of the French nuclear submarine Le Triomphant.

Malaysia signed a procurement agreement for two Scorpene submarines valued at over one billion euros in 2002.

The Scorpène class submarines are a class of diesel-electric attack submarines.

 

According to the then RMN Chief, Tan Sri Ramlan Mohamed Ali, the acquisition of the submarines will enhance the RMN’s three-dimensional warfare capabilities (anti-air, surface, and underwaBoth Scorpene class submarines owned by the RMN, built by DCNS (now Naval Group) and Navantia, are capable of launching “Black Shark” heavyweight torpedoes and “SM39 Exocet” anti-ship guided missiles.

Malaysia is the only country in Southeast Asia to use Scorpene-type submarines.

The capabilities of the RMN’s Scorpene submarines and the expertise of the national submarine crew are indeed recognized by foreign nations.

Defence Security Asia once wrote about how the RMN’s Submarine Force had received numerous offers and requests from foreign navies wanting to conduct training exercises with the country’s Prime Minister Class “Scorpene” submarines, KD Tunku Abdul Rahman and KD Tun Abdul Razak.

 

In an interview with the local media a few years ago, it was reported that offers from foreign countries to conduct joint exercises with the two national submarines were likely because they were “excited” to train with Scorpene submarines operated by the RMN.

This is because, it was mentioned, not many countries in the world possess and operate Scorpene submarines.

Besides Malaysia, other naval forces using Scorpene submarines include India, Brazil, and Chile. — DSA