Contracts Worth US$ 745 Million Announced At DSA 2016

Malaysia’s Defense Ministry has announced eight defense contracts worth RM2.8 billion (US$716 million), four Letters of Acceptance (LOA) worth RM114 Million (US$ 29 million), two Letters of Intent and a Letter of Instruction during the ongoing Defence Services Asia (DSA) Exhibition and Conference.

The two biggest deals are for the Scorpene refit awarded to Boustead DCNS Sdn Bhd for RM1.173 billion and the Starstreak missiles contract worth RM897 million which was awarded to Global Komited Sdn Bhd, a Weststar subsidiary.  

In a statement released, Boustead Heavy Industries Corp Bhd (BHIC) told Bursa Malaysia that Boustead DCNS Naval Corp Sdn Bhd, a between BHIC’s unit BHIC Defence Technologies Sdn Bhd and DCNS SA, had received and accepted a letter of acceptance (LOA) from the Government at a total dual currency contract price of 169.859 million euros (RM799.28mil) and RM432.404mil.

The contractual refit period for each submarine is 18 months from the respective start dates.

The other contracts signed includes: DRB Hicom Defence Technologies Sdn Bhd (Deftech) signed contracts for 222 units of 3 tonnes Handalan trucks worth RM73.7 million and spare parts and services for the PT-91M MBT and its variants estimated RM33 million; Gading Kasturi Sdn Bhd was awarded a RM134 million contract for the rental services of Airbus Helicopters EC120B helicopters for basic flight training; Puncak Teknologi Sdn Bhd for the supply of harbour surveillance and underwater detection system under the RM24.9 million contract; Flumen Technologies for the Army’s Virtual Immersive Training Simulator estimated RM33.8 million; Halaman Optima Sdn Bhd was awarded a RM321 million contract for the purchase of six MD Helicopters MD530G; and RM77.9 million worth contract to Kulitkraf Sdn Bhd for combat boots for the Malaysian Army.

The four Letters of Acceptance (LOA) signed by the ministry are: a RM15.4 million LOA to AVP Engineering Sdn Bhd for 22 units of 5 tonnes 4X4 MAN GS cargo trucks ; a RM45.9 million worth LOA to Usahawan PSE Sdn Bhd for the supply FAST ballistic helmets; a RM34.5 million contract to Astra Permai for the barter trade of Otomat missiles and components with eight Electro-Optical Fire Control System (EOFCS) for the 24th Corvette Squadron; and a RM18.7 million contract to Zigmar Sdn Bhd for the RMAF C130 Ageing Aircraft Technical Training Management.

The ministry also signed a Letters of Intent (LOI) with the US Government for the supply of M109A5 Self-Propelled Howitzer and with Global Turbine Asia Sdn Bhd for the supply of parts and services for the Arrius 1A engines of the RMN Fennec helicopters. In addition, the Letter of Instruction was signed with National Defence Aerospace Industries Sdn Bhd (NADI) for proof of concept for the avionics upgrades programme for the Nuri Helicopter.