Boustead Heavy Industries Corporation Berhad said it sees better prospects in 2022 from its strong order book and the RM16 billion the Malaysian government allocated for defense in Budget 2022.
Sharing the prospect with shareholders during BHIC’s 50th Annual General Meeting, its Chief Executive Officer, Sharifuddin Md. Zaini Al-Manaf said, “The increase in seaborne trade and marine leisure vessels’ traffic, plus the rebound in the aviation sector, as well as offshore exploration and production activities, provide us with optimism to do well in 2022”. In addition, he said that the Government’s commitment to safeguard the nation’s security and the fairly generous allocation of RM16 billion for the defense sector in Budget 2022 augur well for the Group’s prospect of attaining new contracts and extension of contracts in the defense and security sectors.
BHIC recently delivered three Littoral Mission Ships to Royal Malaysian Navy and the completion of various projects at hand, plus the awards of various new contracts and contract extensions in 2021 bodes well for its financial standing.
The group added that its outstanding order book (including its associates and joint ventures) stood at RM4.9 billion which is expected to last until 2028. Adding the order book replenishment target for BHIC Group for FY2022 is RM274.5 million.
The group suffered severely in 2021 with trouble delivering orders, alleged bribery cases, and potential cancellation of contract from the Navy.
