Boustead Heavy Industries Corporation Berhad (BHIC), a member of Boustead Group, is a leading defence, security and marine contractor in Malaysia. It is involved in the aerospace sector through BHIC AeroServices Sdn Bhd (BHICAS), a Joint Venture company. BHICAS is located at the Helicopter Centre, Malaysia International Aerospace Centre (MIAC), Sultan Abdul Aziz Shah Airport in Subang, Selangor Darul Ehsan. Its principal activity is providing a comprehensive range of services to helicopters.
Through the Transfer of Technology (TOT) and On The Job Training (OJT) programmes, BHICAS contributes to the fulfilment of several national agendas including :
- creation of local Malaysian talents in aviation management and maintenance;
- creation of a self-reliant local workforce to aspiration of the Government of Malaysia (GoM) to make Malaysia a regional player in the aviation industry;
- development of local talent pool and skilled workers to impart their knowledge to others for the betterment of the local industry;
- safeguarding the nation’s sovereignty through developing competent human capital in the aviation sector to support Malaysia’s defence operations;
- creation of high skilled, high income jobs; and
- attainment of self-sufficiency in local defence capability.
Another programme under Industry Collaboration Programme (ICP) undertaken by BHICAS is the Creation of Additional High-Value Employment and Competency Development to Support Aviation Maintenance, repair and Overhaul (MRO) Capabilities. This programme aims to create high-value employment and local expertise to support, maintain, repair and operate aerospace facilities and Royal Malaysian Air Force (RMAF), Royal Malaysian Navy (RMN) and Malaysia Maritime Enforcement Agency (MMEA) fleets. Through this initiative, BHICAS contributes to creating employment and generating economic returns, in addition to reducing reliance on foreign expertise. The success of this programme can be measured by the RM24.6 million ICP Credit Value it creates.
To create local MRO expertise in the industry, BHICAS provides its staff with specialised training and courses for technological enhancement and upgrading to meet professional standards. BHICAS is spending around RM1 million to support the program which covers MRO Capability and Competency Development through technical training, seminars, work participation and on-the-job training. The training provided is AS365N3 Training for Airframe Type Rating and Avionics Type Rating. BHICAS also provides advanced training to its staff to enhance their capability in the areas of management, aviation and aircraft maintenance.
As part of its Corporate Social Responsibility initiative, BHICAS provides employment opportunities to ex-servicemen from RMAF and RMN. Currently, 29 of them are on the company’s payroll in various positions, including Chief Executive Officer, Senior Maintenance Manager and Head of Commercial.’ D
Among the helicopters serviced by BHICAS are MMEA’s AS365N3 helicopters
Developing vendors/supply chain
One of the programmes implemented by BHICAS under the ICP is Subcontracting of Work Packages to Local Company for the Contract. This is carried out based on the requirement by the GoM for the ISS Contract for RMAF EC725 helicopters The programme aims to generate business and job opportunities and develop knowledge and expertise for local sub-contractors, companies and / or vendors in the aerospace and defence industries, besides reducing foreign exchange outflow. The program has created RM132 million worth of ICP Credit Value.
The benefits of the programme are manifold, as listed below :
- nurturing the development of local companies’ capabilities in the areas of aerospace maintenance, production, supply of material and services;
- creating business opportunities for local companies and generating economic activities;
- reducing reliance on overseas technical support and services for our aerospace industry and stemming foreign exchange outflows through the use of local expertise;
- contributing to building autonomy in long-term support and promoting self- reliance in local defence capabilities;
- generating employment opportunities amongst the locals;
There are 64 companies in BHICAS’ Approved Vendor List, representing various segments and areas in the aerospace industry. These include OEMs, MRO, authorised distributors; design; calibration/laboratory; petroleum, oil and lubricants; services e.g. painting, sheet metal, non-destructive testing; and supplies of hardware, consumables, general tools etc
Responding to the Defence White Paper
BHICAS is a member of Aerospace Working Group, Malaysia Industry Council for Defence, Enforcement and Security and Malaysia Aerospace Industry Association. Through its participation in these groups, the company has the platform to provide its views and inputs to the Government of Malaysia in the formulation of policies related to the aerospace and defence industries.
BHICAS is also recognised by National Aerospace Industry Coordinating Office (NAICO) under the Ministry of International Trade and Industry (MITI) as one of the major local companies in the national aerospace industry.
Page 3 of 5
Partnership with a global player
BHICAS partners with a global player in the aerospace industry, namely Airbus Helicopters which holds a stake in the company through Airbus Helicopters Malaysia Sdn. Bhd (AHM).
For the purchase of EC725 helicopters by the GoM for RMAF, Airbus Helicopters was subjected to an offset obligation that obligates it to develop MRO capabilities among local players in the aerospace industry. The company is committed to providing support to the MRO centre of the helicopters and its sales efforts in Malaysia by developing long term cooperation with local entities. Airbus Helicopters identified BHIC Defence Technologies Sdn. Bhd. and Prestige Pillar Sdn. Bhd. to develop BHICAS with its Malaysian subsidiary, Airbus Helicopters Malaysia Sdn. Bhd. as the MRO centre.
acorn communications sdn bhd
Reaching for the skies
According to Malaysia External Trade Development Corporation (MATRADE), Malaysia’s expertise and strength in the aerospace sector lie mainly in MRO services which accounts for half of all business activities in the local sector, while the manufacturing of aero-structures and engine components makes up the other half.
“In this regard, BHICAS is well-positioned to capitalise on growing international demand for MRO aerospace services and contribute to the national agenda of making Malaysia the leading aerospace nation in Southeast Asia and an integral part of the global market by 2030 as envisioned in the ”, said Dato’ Tuan Mustapha.
“With the excellent facilities and experienced, skilful personnel at BHICAS, the company is set to expand its presence in the aerospace sector to cover both rotary-wing and military fixed-wing MRO solutions”, he said.
BHICAS Chief Executive Officer, Dato’ Tuan Mustapha Tuan Hussin, said the company is already playing a key role in the Malaysia aerospace sector ecosystem and is poised to enhance its contribution to the sector’s growth
