BHIC aims to be global player
Group has resources and proven track record to undertake future projects
BOUSTEAD Heavy Industries Corporation Bhd (BHIC), which is a 65 per cent-owned subsidiary of Boustead Holdings Bhd (Boustead Group), has set its vision of becoming a global player in the commercial aeronautical and maritime sectors.
BHIC executive deputy chairman and managing director Tan Sri Ahmad Ramli Mohd Nor said Boustead Group has the resources and a proven track record of all undertakings.
“While most of our businesses are currently with the government, we are also making inroads elsewhere,” he told NST Business in an exclusive interview recently.
Other than BHIC, Boustead Group’s business interests are focused on six key divisions, namely plantation, property, pharmaceutical, trading and industry, finance and investment.
BHIC’s core subsidiaries are BHIC AeroTech Sdn Bhd, Boustead Penang Shipyard Sdn Bhd and BHIC Marine Carriers Sdn Bhd, all of which it owned 100 per cent stakes, the company website showed.
Ahmad Ramli expects BHIC venturing into the servicing fixed wing aircraft in the future.
“That differentiates BHIC from the other players. In any business, there are competitors, but our competitors can only compete with us in the commercial sectors, but not in the defence segment,” he said.
BHIC currently has an order book of RM7 billion, mainly from the defence and security sectors.
Ahmad Ramli said the company was also committed towards its vendor development programme, where it eyes a majority of more than 1,000 vendors in its stable, especially more world-class Bumiputera entrepreneurs.
“We believe that if we have good vendors, BHIC can be competitive not only locally, but also regionally and globally.
“We have the vision of developing the entire ecosystem for the maritime industry. With a good eco-system, the government will be more encouraged to give out more contracts,” he said.
Ahmad Ramli said BHIC is keen to help generate the local economy by creating more jobs in terms of high-end and value-added skilled workers, fulfilling the objective of national economic transformation. “Overall, we are involved in the economic enhancement programme and we have certain targets that the government has already requested for us to undertake,” he said.
Acknowledging that it cannot be over reliant on one economic activity or limited clientele, Boustead Group is building its expertise beyond the Malaysian shores.
“We have to continue upgrading ourselves. For example, we have met progress and now in a position to offer the government for the next programme, ships that are indigenously designed, integrated and built,” said Ahmad Ramli, noting that it was not abandoning commercial shipbuilding just yet.
“We are capable, but for the time being, we are not prioritising it,” he said, referring that the tepid commercial shipbuilding market.
BHIC is in talks with foreign clients for a total spectrum of the business, including servicing the defence-related ships.
On the potential foreign partner and new market penetration, Ahmad Ramli said BHIC would choose a partnership depending on the business requirement.
“We have partnered with the French and the Germans. We are also more confident when it comes to building ships. We have built credible expertise. Now we want to put more focus on areas where we don’t have the expertise,” he said.
Meanwhile, BHIC plans to diversify into the airspace sector, with the Technology Depository Agency Bhd, under the purview of the Finance Ministry.
“This is part of our efforts to assist the government working towards Malaysia’s ability to control the national airspace. However, there is an infrastructure required to do it,” said Ahmad Ramli.
He said BHIC was exploring the possibility to assist the government through the national airspace management centre for the aviation/aerospace sector.
Ahmad Ramli said further discussions were needed to look at the infrastructure participation.