Thursday, 31 October 2013

Home Ministry to look into US spy claims

Malaysia is looking into allegations by intelligence whistle-blower Edward Snowden, that the United States runs a monitoring station at its Kuala Lumpur embassy to tap telephones and monitor communications networks.

Home Minister Datuk Seri Ahmad Zahid Hamidi said he viewed the matter seriously, adding that the ministry will study the report.

"We will study the report. If there was any intelligence gathering activities here, as we understand that, it is a sensitive issue since it involves several countries.

"We will work with Wisma Putra to see if there was any spying conducted here... if there was, we leave it to Wisma Putra (Ministry of Foreign Affair) to take action," he told reporters at the Parliament lobby yesterday.

It was reported on Tuesday that documents leaked by Snowden revealed that there were 90 electronic surveillance facilities worldwide, including in US embassies in Jakarta, Bangkok, Phnom Penh and Yangon.

It was also stated that a map originally published by German magazine Der Spiegel and touched on by dailies such as The Sydney Morning Herald and The Age did not show such facilities in countries such as Singapore, New Zealand, Britain, Japan and Australia, that are touted to be the US' closest allies.

In August, Australian intelligence sources had confirmed that top secret intelligence tool, XKeyscore, has been used to spy on Malaysia and some other Asia-Pacific countries.



The Sun, Page: 1
By Hemananthani Sivanandam
Thursday, 31 October 2013

Kerajaan timbang cadangan ganti jet pejuang

Dassault Aviation yang berpangkalan di Perancis berkata, kerajaan Malaysia masih menimbang cadangan menggantikaii jet pejuang pelbagaifungsi, MiG-29M Fulcrum, dengan pesawat pejuang buatan Perancis, Rafale.

Pengarah Program Rafale bagi Malaysia, Daniel Fremont berkata, Tentera Udara Diraja Malaysia (TUDM) masih mengkaji cadangan itu dan "kami masih menunggu".

Jet pejuang Rafale, yang dikeluarkan oleh Dassault Aviation, merupakan antara empat pesawat yang dikatakan pilihan untuk menggantikan MiG-29M Fulcrum.

Yang lain termasuk Boeing F/A- 18E/F Super Hornet, SAAB JAS-39C/D Gripen dan Eurofighter Typhoon.

Dassault Aviation sebelum ini dilaporkan merancang membuka kilang pemasangan di Malaysia bagi mengeluarkan beberapa bahagian jet Rafale.

Untuk itu, Fremont berkata, ia merupakan projek khusus yang dibangunkan untuk masa depan pesawat berkenaan di Malaysia.

"Dengan membina kilang di sini, syarikat itu akan dapat berkongsi pengetahuan mengenai jet berkenaan, perkara yang penting untuk penyelenggaraan masa de- Tumpuan ialah ke atas Pesawat Tanpa Pemandu (UAV) yang kini semakin banyak digunakan dalam kajian saintifik dan untuk tujuan pemantauan berbanding peranan sebelum ini untuk tujuan ketenteraan semata-mata DANIEL FREMONT Pengarah Rafale di Malaysia


Utusan Malaysia, Page: 17
By No author available
Thursday, 31 October 2013

Wednesday, 30 October 2013

China Nuclearpowered Submarine

Malay Mail, Page: 30
By No author available
Wednesday, 30 October 2013


BEIJING has put its nuclearpowered submarine fleet on public display, with state media yesterday touting the move as unprecedented and necessary to show other countries China's strike capabilities as territorial tensions mount. In an overt declaration of China's high-seas strength, several state-run papers ran front-page stories on the four-decade-old submarine fleet, while state broadcaster CCTV has devoted much airtime in recent days to its drills and exercises. China's first nuclear-powered submarine was launched in 1970, the Global Times said, but had not been properly taken into account by others. "China is powerful in possessing a credible second-strike nuclear capability," it said in an editorial yesterday, adding: "Some countries haven't taken this into serious consideration when constituting their China policy, leading to a frivolous attitude toward China in public opinion." "China needs to make it clear that the only choice is not to challenge China's core interest," said the paper, which often takes a nationalistic tone and is close to the ruling party. "Developing marine-based nuclear power is part of such work." In a nod to accusations that Beijing is becoming increasingly assertive over its territorial claims in the East and South China Seas, the editorial continued: "Perhaps it will give excuse to 'China Threat' speculation but the benefit will far eclipse the trouble created by external opinions." The media reports have focused on China's older Xia-class submarines, rather than its newer Jin-class vessels. But analysts said the footage could be intended as a reminder that the world's second-largest defence spender is growing in confidence and building an even more powerful fleet. "What they're showing you, they re pretty much just stock scenes," said Richard Bitzinger, senior fellow at the S. Rajaratnam School of International Studies at Singapore's Nanyang Technological University, adding that it might constitute "very subtle sabre-rattling". Meanwhile in TOKYO, Japan's defence minister said yesterday, Beijing is jeopardising peace in a row with Tokyo over disputed islands, days after China warned any bid to shoot down its drones would constitute "an act of war". Itsunori Qnodera's comments are likely to further heighten fears the two countries could be sliding towards conflict over the outcrops in the East China Sea and come as China showed off its fleet of nuclear-powered submarines and as Japan readies for war games. "I believe the intrusions by China in the territorial waters around the Senkaku islands fall in the 'grey zone' (between) peacetime and an emergency situation," Onodera said. AFP

Malaysia and China will conduct joint military exercises next year.

During his first official visit to China as Defence Minister, Datuk Seri Hishammuddin Tun Hussein said it would be the first time for both countries to hold joint exercises since the memorandum of understanding on defence cooperation was signed in 2005.

"Malaysia plans to have armed force exercises in 2014," he said in a statement. Hishammuddin is in China for a three-day visit. This follows Chinese President Xi Jinping's state visit early this month to Malaysia where he and Prime Minister Datuk Seri Najib Tun Razak touched on boosting military cooperation.

"The purpose of my visit is to strengthen military ties between Malaysia and China. This trip is significant as we will celebrate the 40th anniversary of the establishment of bilateral diplomatic relations next year," he said.

Hishammuddin met his Chinese counterpart Chang Wanquan yesterday to discuss the agreement on enhancing strategic cooperation.

"Both sides have agreed to foster cooperation in the field of defence through joint exercises, exchange of navy officers and military and defence industry resources to combat terrorism and transnational crime," Hishammuddin said.

He added that he had extended an invitation to Chang to visit the Royal Malaysia Navy base atTeluk Sepanggar in Sabah to launch direct contact between Malaysia's Naval Sea Region 2 headquarters and China's South Sea Fleet.

Malaysia has established official military ties with China since 2005.

Courtesy 

The Star, Page: 25
By Tho Xin Yi
Wednesday, 30 October 2013

Tuesday, 22 October 2013

Deployment of seven new battalions in Lahad Datu a major security boost | MOLE.my

Deployment of seven new battalions in Lahad Datu a major security boost | MOLE.my

Implementation of ESSCOM begins by upgrading logistics structure in FELDA Sahabat (UPDATED) | MOLE.my

Implementation of ESSCOM begins by upgrading logistics structure in FELDA Sahabat (UPDATED) | MOLE.my

ESSCOM, ESSZONE will be implemented



KOTA KINABALU: The federal government is committed to fulfillng its promise to the people of Sabah, of implementing the Eastern Sabah Security Command (ESSCOM), which is the security enforcement agency in the Eastern Sabah Security Zone (Esszone).



Prime Minister Datuk Seri Najib Razak said the federal government, however, would not do anything without the agreement of the people of Sabah.
"The state boss is the Chief Minister (Datuk Seri Musa Aman), who will consult me and we will jointly decide on what we need to do so that every inch of land in Sabah will be protected.
Najib hoped that Kiram's (self-proclaimed "Sultan of Sulu" Jamalul Kiram III) followers would not continue their agenda (of claiming their rights on Sabah).
"We hope, for Kiram's followers, enough is enough...don't chase after something that will bring you destruction as the people of Sabah are not willing for Sabah to be taken over by you," Najib said when opening the 28th Annual Conference of Parti Bersatu Sabah (PBS), here, today.
Also present were Musa, who is also Sabah Barisan Nasional (BN) chairman, and PBS president Tan Sri Joseph Pairin Kitingan.
Earlier, in his speech, Pairin said the people of Sabah welcomed the establishment of Esscom and Esszone following the intrusion in Lahad Datu by Sulu militants.
He said the incident was an eye opener for the people who had for long voiced their concern over the influx of illegal immigrants into the state which threatened the economy, social environment and security of Sabahans.
"Therefore, the people of Sabah appreciate the action taken by the federal government against the armed group who called themselves the Army of the Sulu Sultan."
He said the action showed the federal government was really committed to safeguarding national security and sovereignty. 
Pairin also raised about the details of the establishment of Esscom and Esszone, which according to him, were not very clear to the people of Sabah.
"For example, they want detailed information on the Esszone locations, when it will operate and when additional security manpower will be recruited to meet the needs of the operations centres," he said.
Pairan said PBS felt that these must be explained further so that it would be clear to the people that the government had taken effective measures, hence assuring them that security in Sabah was under control.
He said the people in the state also wanted to know the extent of Sabahans' involvement in terms of manpower deployed to the Esszone.
"We hope that consideration be given to recruiting Sabahans to be among the armed forces and police personnel (for the Esszone) and with regard to appointments and promotions in the armed forces and police."
Pairin said Esscom was not only important for maintaining security in Sabah but also for economic impact, and hoped the federal government would provide details on this impact as a result of the setting up of Esscom. 
The establishment of Esscom was announced by Najib on March 7 after his first visit to Lahad Datu following the intrusion incident in February.
Esscom which is headed by its director-general Datuk Mohammad Mentek, officially began operating on April 1.
Esszone, the area under the purview of Esscom, involves 10 districts, namely Kudat, Kota Marudu, Pitas, Beluran, Sandakan, Kinabatangan, Lahad Datu, Kunak, Semporna and Tawau, covering 1,400 kilometres of shoreline. 

Bernama
21 October 2013| last updated at 09:39PM


Threat of Sulu terrorists remains: Zahid

KUALA LUMPUR: Although Jamalul Kiram III of the so-called Sulu sultanate died yesterday, the threat of Sulu terrorists against Malaysia remained, said Home Minister Datuk Seri Dr Ahmad Zahid Hamidi.

Based on police intelligence network, there were seven people tussling to head the terrorist group which was said to have inherited the 'Sulu sultanate', he said.
Even though the names of the seven could not be revealed, the police and the Malaysian Armed Forces (ATM) had been instructed to be prepared against any eventuality, he added.
"Upon Jamalul's death, we cannot assume that the intrusion of Kiram terrorists has thereby, ended, as there are seven individuals who feel they are eligible to take over the 'Sulu sultanate'.
"The police and ATM are monitoring closely, as what happened in February was not Jamalul Kiram's personal action and we suspect there were hidden hands which caused the terrorists to enter our country through Lahad Datu, Sabah," he said when met by reporters at Parliament lobby here today. 
Yesterday, the media reported that Jamalul Kiram died at a hospital in Manila, Philippines due to organ failure.
Ahmad Zahid said national security should remain on full alert after the death of Jamalul as it could not be assumed that those who took over from him would not embark on any undesirable action.
In February, security forces launched 'Operasi Daulat' to eliminate the terrorists after negotiation over a month failed to get them to surrender. 
During the operation, 10 security forces personnel were killed while 68 terrorists were shot dead, 173 arrested and several others, including Jamalul Kiram, fled.
Esscom census at two Sandakan villages
Published on: Wednesday, September 04, 2013

Lahad Datu: The Eastern Sabah Security Command (Esscom) is conducting its census in Kampung Mangkalinau and Kampung BDC in Sandakan soon, its Director-General Datuk Mohammad Mentek said Tuesday.
He said the census would be conducted to obtain information on the security aspect and demography of the water villages to facilitate the relocation process of the residents.
"A meeting will be held on Sept 5 to discuss the relevant matters pertaining to the census to be conducted at the two villages," he added. He hoped the village heads and members of the Village Development and Security Committee would extend the necessary assistance to ensure the census could be conducted smoothly.
"The purpose of the census is to gather information and not to make arrest," he told reporters after a Hari Raya celebration hosted by Esscom at the Marine Police base, here.
The event was also attended by Sabah Chief Minister Datuk Seri Musa Aman. Mohammad said that there were 131 water villages in Sabah, involving 22,600 houses and 136,000 residents, but not all the villages would be relocated.
He said Esscom would discuss with the National Housing Department for implementation of the people's housing project (PPR) to be streamlined with the proposed relocation of the water villages.
On the floating villages in Mukim Simunul, Semporna, Mohammad said all the residents in nine villages would be relocated to the PPR Bubul Lama, where there were 837 units of houses.
He said he had discussed with the Semporna District Officer to identify suitable site for the PPR project in Bugaya to accommodate the remaining residents from the floating villages in Mukim Simunul.

ESSCOM: Sabah learns from the experience of Sarawak

SIBU, March 17– In early 1972, the communist threat in Sarawak, especially in its central regions (Sibu, Kapit, Sarikei, Mukah and Bintulu), was fast approaching breaking point.
The estimated 500 militant communist terrorists from the Northern Kalimantan People’s Party (Party Rakyat Kalimanatan Utara or PARAKU) not only laid ambushes on the security forces but were intimIdating, harassing and killing innocent civilians at will. Curfews which at times were round the clock, were the order then.
The worsening situation forced the government under the leadership of the then prime minister Tun Abdul Razak Hussein to declare the central region a “Special Security Area” which happened on March 25, 1972. This was to allow its machinery to be fully geared and mobilised with the imperative aim of maintaining public security and safety.
A day later RASCOM or the Rajang Security Command was formed.
“It was a bold experiment. For the first time in Sarawak and in the country, a joint Civil, Police and Military establishment was formed. It was to allow policising and decisions to be made and executed fast and efficiently, particularly where their coordinated services were necessary,” wrote one of its chief executive officers, the late Ignatius Angking
RASCOM was then administered by the then Sarawak chief minister as its director of operations.
He co-ordinated and controlled the functions and activities of the security forces and all civilian departments in the RASCOM areas and was assisted by a joint Civil, Military and Police Command headquarters.
In the words of Tun Abdul Razak, he said:” Under the new set-up, the machinery of the government would be streamlined from district to divisional level.
“The civil administration, police and military will work as a team. This will ensure that whatever measures the government intends to take to counteract the CT (communist terrorist) activities would be taken by all.”
Datuk Patinggi Abdul Rahman Yaakub, the then chief minister, said it was “now an established fact that in the type of war that we are fighting aganist the communist terrorists, guns alone are not enough.”
“It is a battle for the hearts and minds. It is a battle that is fought not only by the soldiers, but by all. It is a war in which no matter what they are and where they are in Sarawak, all must play their part,” said Abdul Rahman Yaakub, before he became RASCOM’s first director of operations.
Immediately, new strategies and tactics to fight the CTs were formulated in parallel with civil counter-measures in an all out war.
Among the very first major measure was the resettling of folks living in longhouses scattered deep in the interiors into regrouping and resettlement schemes.
This was to stop them from being harrassed by the terrorists who would come to them looking for food, logistics and recruits.
Altogether, five regrouping and resettlement schemes were formed. The major ones are the Nanga Ngungun with 23 longhouses and over 3,000 people, Nanga Tada (16 with 2,000 people) and Nanga Jagau(also 24 with 3,000 ) all in the Kanowit district and Nanga Sekuau (also 24 and over 6,000) in the Selangau District.
The other two are minor ones, at Nanga Dap(five with about 480) and Rantau Panjang (three and more than 300).
Bascially, while the Police Special Branch and Military Intelligence Unit hunted for intelligence, the military/border scouts/police field force would hunt down the terrorists or persuade them to surrender.
The civillian component would provide medical, adult education and other social services to the settlers beside organising civic assemblies and security briefings to warn the people on the dangers of supporting the communists.
They were also engaged in monitoring people movement and food denial excercises to restrict the flow of food, medicine and other essential items to the CTs within the RASCOM areas.
RASCOM soon proved itself to be a most effective strategy in the fight aganist the terrorists. Its turning point came on March 4, 1974.
Under a move known as ” Operation Sri Aman”, some 585 terrorists in the whole state decided to come out of their jungle hideouts and surrendered, leaving some 100 hardcore remnants behind.
And on March 3,1990, about 50 of them finally chose to follow suit which finally closed the state communist insurgency problem of more than three decades.
From then on, Sarawak begun to enjoy peace and security and with federal government support focused on pursuing economic and infrastructure development progress.
Without RASCOM, which was eventually disbanded on April 6, 1995, the state would not be what it is now.
Now 41 years later, on March 7, 2013 and by sheer coincidence, the son of the man who had announced the formation of RASCOM also announced the formation of a “Special Security Area (SSA)” for Sabah’s east coast.
It was later named ESSCOM or the Eastern Sabah Security Command covering a coastline of 1,400 kilometres from Kudat to Tawau.
ESSCOM came about due to the intrusion on February 12 of some 150-odd armed Sulu terrorists from the southern Philippines, who had landed in stages in traditional barter trade boats in Silabukan and Sungai Merah, close to Kampung Tanduo in Felda Sahabat 17, about 110 kilometres from Lahad Datu.
In a month since they intruded into the area, 56 of of the terrorists have been killed in gunfights.
Malaysia lost nine men, eight policemen and a soldier in the skirmishes.
Another soldier died when his truck overturned while ferrying supplies to the troops.
ESSCOM will protect more than 1.4 million Sabahans via land and sea with the deployment of not less than five batallions from the armed forces and police’s General Operations Force (GOF).
Its headquarters will be based in Lahad Datu.
“There is much ESSCOM can learn from the RASCOM exprience. ESSCOM is a step in the right direction,” said Brig-Gen Datuk Stephen Mundaw, the commanding officer of the Ninth Infantry Brigade here. The brigade replaced RASCOM.
Mundaw had served in RASCOM for several years, as a young military officer where among his fellow officers is the current armed forces chief, General Tan Sri Zulkifeli Mohd Zin.
Speaking to Bernama here, he said he personally believed “ESSCOM is a very excellent move and very timely as well in the light of what had happened in Sabah’s east coast.”
“It is in the same vein as RASCOM which was a very successful model in the fight against the communist terrrorist insurgency in Sarawak.
“I am sure there is much that ESSCOM can learn from RASCOM’s approach and exprience since both are, firstly, security areas. ESSCOM’s structure may be slightly different but many of its objectives and elements may reflect what RASCOM was all about,”he said.
“Secondly, it will be about inter-agencies co-operation and operations. It is commanded by a civilian while the military and police will do the enforcement duties. The civilian component, to include the local authorities and the relevant state and federal agencies, can be tasked with the non-combatant but equally important community development services and the area’s growth and prosperity,” he added.
“What we all want is peace and stability so that development and progress can come in uninterupted. Again, above all the country’s sovereinty must be upheld at all times.
“I also personally believe in Sarawak, particularly in the Ninth Infantry Brigade areas covering all the state’s central region and Miri division areas, we must not neglect its long porous border and coast which we must manage very well like in eastern Sabah. People can come in and go out anytime. The Lahad Datu incident like what our prime minister had said, is a wake-up call,” he said.-
 BERNAMA






Friday, 18 October 2013

Lumut Naval Town, Malaysia: EKSESAIS BERSAMA TLDM-TUDM (ANGSA 8/2013)

Lumut Naval Town, Malaysia: EKSESAIS BERSAMA TLDM-TUDM (ANGSA 8/2013)

EKSESAIS BERSAMA TLDM-TUDM (ANGSA 8/2013)

Eksesais bersama TLDM dan TUDM, yang lebih dikenali sebagai ANGSA 8/2013 berakhir telah berjaya dilaksanakan dengan mencapai semua objektif yang telah disasarkan. ANGSA 8/2013 berlangsung mulai pada 26 Ogos hingga 13 Oktober 2013 bertempat di Pusat Taktik dan Maritim (PUSTAKMAR), Pangkalan TLDM Lumut, Perak Darul Ridzuan.                

Eksesais ini turut dijayakan dengan penglibatan Tentera Darat Malaysia yang menyumbang kepada kejayaan eksesais pada kali ini. Sesuai dengan usia 8 tahun perlaksanaannya, ANGSA menampakkan kematangan dan keberkesanan bersesuaian dengan objektif yang telah digariskan. Secara keseluruhannya, latihan secara Command Post Exercise (CPX) atau Pos Pemerintahan (POSTAH) kali ini menekankan aspek interoperability antara perkhidmatan berjaya mencapai objektif utamanya iaitu:
         
a.       Untuk Meningkatkan Keboleh-Operasian Antara Perkhidmatan           dalam Menyokong Pengoperasian Bersama.
          b.       Untuk Melaksanakan Perancangan Operasi Maritim Secara Bersama (Joint Maritime Operation).
          c.       Melaksanakan Command Post Exersice (CPX) menggunakan Joint           Theater Level Simulation (JTLS).

Secara keseluruhannya, penanda aras kejayaan eksesais ANGSA 8/2013 boleh diukur berdasarkan beberapa aspek:

a.       Kesemua perancangan eksesais, telah dapat dilaksanakan sepertimana yang dijadualkan mengikut fasa yang telah ditetapkan.
          b.       Latihan yang dilaksanakan memperlihatkan keberkesanan kawalan           dan pemerintahan serta memberi peluang kepada Pegawai Kanan membuat keputusan dan dalam        masa yang sama memberikan     bimbingan kepada pegawai muda.
          c.       Pelaksanaan CPX berjaya mencapai matlamat dengan persediaan           perancangan dibuat dengan betul dan penghasilan keputusan yang           hampir tepat mengambilkira warfare domain, principal of war dan           persekitaran sebenar yang disimulasikan.
          d.       Corak perancangan yang dihasilkan adalah satu template     persiapan peperangan yang baik, yang boleh dikembangkan pada siri   latihan yang akan datang.
           e.      Semua peringkat pegawai dan anggota yang terlibat telah           mempamerkan semangat kerjasama dan saling memahami antara           perkhidmatan darat, laut dan udara.

       
        Eksesais ANGSA 8/2013, turut berjaya menerapkan elemen peperangan siber dan media.  Media elektronik telah dicipta dalam bentuk ’near real life’ di mana klip video  dan media cetak dalam bentuk keratan akhbar dilakukan.  Ianya didapati efektif dalam membentuk minda peserta.
         
Selain itu, Program kemasyarakatan, Projek Jiwa Murni turut diadakan sempena eksesais ANGSA 8/2013. Program ini dilaksanakan di Pusat Pendidikan Dalam Komuniti (PPDK), Nur Hidayah, Taman Krishnan, Seri Manjung, Perak. Program ini adalah merupakan salah satu daripada aktiviti kemasyarakatan peserta eksesais yang dilaksanakan khas bertujuan untuk mengeratkan hubungan serta kerjasama dengan masyarakat awam selaras dengan pelaksanaan program National Blue Ocean Strategy. Di dalam program yang dianjurkan ini, TLDM dan TUDM telah menyumbangkan peralatan fisioterapi dan menjalankan kerja senggaraan dan memperindahkan bangunan serta kawasan PPDK ini.

ANGSA 8/2013 merupakan lapangan terbaik bagi ketiga-tiga perkhidmatan khususnya buat TLDM dan TUDM dalam melaksanakan latihan bersama dalam senario peperangan maritim dan perancangan yang telah dihasilkan akan berupaya menyokong perancangan eksesais yang akan dating. Eksesais ANGSA 9/2014 dirancang untuk dilaksanakan secara latihan medan yang memerlukan perancangan lebih rapi untuk dijayakan.

Majlis Penutup Eksesais telah disempurnakan oleh Panglima Tentera Udara, Jeneral Tan Sri Dato’ Sri Rodzali bin Daud TUDM dengan kehadiran Panglima Tentera Laut, Laksamana Tan Sri Abdul Aziz bin Haji Jaafar dan Timbalan Panglima Tentera Darat Leftenan  Jeneral Dato Seri Panglima Ahmad Hasbullah bin Haji Mohd Nawawi melalui Video Tele Conference yang dipancarkan dari Pejabat Panglima Tentera Udara, Wisma Pertahanan, Kuala Lumpur. Sementara itu Pengarah Eksesais, Laksamana Madya Dato’ Abd Hadi bin A. Rashid dan Timbalan Pengarah Eksesais, Mejar Jeneral Dato Hj Affendi bin Buang TUDM serta peserta eksesais yang lain hadir dalam sesi Video Tele Conference dari lokasi Auditorium Zain, PUSTAKMAR, Pangkalan TLDM Lumut.




DSC_6293.JPG


Wednesday, 9 October 2013

Malaysia, Kuwait and Undisclosed Country Firm Air Defense Contracts with Rheinmetall

Malaysia, Kuwait and Undisclosed Country Firm Air Defense Contracts with Rheinmetall

LTAT breaks income record, members get 16% dividend



KUALA LUMPUR: Lembaga Tabung Angkatan Tentera (LTAT) has recorded its highest ever income since its establishment, posting a whopping RM907.4mil unaudited total income for the financial year ended Dec 31, 2012 (FY12) on the back of unit Boustead Group's diversified businesses' strong performances.

On the back of this sterling performance, the Armed Forces Superannuation Fund has declared a huge dividend payout of 16%.
According to Defence Minister Datuk Seri Dr Ahmad Zahid Hamidi, the profit reflected a 5.5% increase against FY11.
“As a result of this significant achievement, members will receive total dividends and bonuses at a rate of 16%, amounting to an RM759.3mil payout, 1% higher than the 15% in FY11.
“The main driver of growth for LTAT is the Boustead Group that has diversified businesses in plantations, property development, heavy engineering, trading and manufacturing, as well as financial services,” he told reporters after announcing the fund's latest financial results.
The FY12 payout comprises 7% in dividends, a 1% bonus and an 8% special bonus in the form of unit trusts, reflecting a jump of 11.6% in total payout against the previous year.
The average yearly dividends and bonuses paid for LTAT members since its establishment 40 years ago stands at 11%. Dividend payouts over the past decade had averaged 14%, while the five-year average payout was 15%.
LTAT's total assets rose by 10% to RM8.8bil while member contributions stood at RM7.8bil last year compared with RM7.1bil in 2011.
“I am pleased that LTAT has recorded such a sterling result, particularly when economic conditions are volatile and uncertain.
“Over the last 40 years, LTAT has never failed its most important stakeholder; serving members of the Armed Forces,” he said.
Ahmad Zahid said for this year, the fund would be targeting to breach the RM1bil mark in earnings, which would also be reflected in the divided payout. He said the payout would at least be maintained if not bettered.
Boustead Heavy Industries Corp Bhd (BHIC), which is involved in shipbuilding activities for the Royal Malaysian Navy (RMN), is expected to fare better in terms of bottomline this year.
“We also hope that crude palm oil prices will improve this year,” he said.
LTAT chief executive officer and Boustead Holdings Bhd deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddinadded that LTAT had quite a diversified investment portfolio that benefited from the dividend payments from Boustead, Affin Holdings Bhd, property and plantations as well as trading in the stock market.
Zooming into the details, Lodin said Boustead's shipbuilding business that recorded a loss last year was set to make a comeback this year, with more orders of second-generation patrol vessels or littoral combat ships (LCS) from the RMN.
Boustead Naval Shipyard, a 20.77%-owned subsidiary of BHIC, has been awarded an RM9bil contract from the Government to design, build and deliver six LCS.
Apart from that, Ahmad Zahid added that the Cochrane development had obtained development approval from the Cabinet and a few agreements had been signed with anchor tenants, which were multinational companies.
“We have also garnered a lot of interest from local corporate players,” he revealed.
One of the biggest developments in the Cochrane area would be IKEA from Sweden. Boustead Holdings has acquired 5.19ha of freehold land in Jalan Cochrane, Kuala Lumpur, from LTAT.
On another note pertaining to Affin's intention of acquiring standalone investment banker Hwang-DBS (M) Bhd, Ahmad Zahid said they were still in preliminary stages of discussion, subject to approval from Bank Negara.
It has been reported that Affin, with the highest bid of RM1.4bil, was the frontrunner of the deal ahead of other contenders like Alliance Finance Group BhdAMMB Holdings Bhd and K&N Kenanga Holdings Bhd.
Besides Boustead Holdings and BHIC, in which LTAT holds a 59.7% and 73.15% stake, respectively, LTAT also has a 35.2% direct stake in Affin, a 54.74% stake in Pharmaniaga Bhd and 9.12% in DKSH Holdings Malaysia Bhd.
In terms of landbank, the fund owns more than 60.71ha of land in Bukit Jalil.
- The Star

Boustead-BAE contract to benefit JV

By Farah Adilla
KUALA LUMPUR: Boustead Heavy Industries Corp Bhd (BHIC) and BAE Systems’ joint venture (JV), BHIC Bofors Asia Sdn Bhd, is set to benefit following the award of a RM175 million sub-contract for the sale of six 57mm Mk 3 naval guns for the Royal Malaysian Navy.
In a statement by BAE Systems International yesterday, it said the letter of award for the contract was granted to BAE Systems this week by the systems integrator, Contraves Advanced Devices Sdn Bhd, a JV between BHIC and Rheinmetall Air Defence AG.
BAE Systems integrated systems director Ulf Einefors said the JV company will initially support BAE Systems with production and local procurement of components as part of its global sourcing programme.
“Then, under a separate transfer of technology programme, assembly and test of the guns, as well as expanding existing maintenance support activities are likely to follow. Our aspiration is to transfer work to our BHIC Bofors Asia JV venture,” said Einefors in the statement.
The company said the 57mm naval gun, designed by BAE Systems in Karlskoga, Sweden, will equip the Malaysian Navy’s second generation patrol vessel — Littoral combat ships (SGPV-LCS). The contract includes ammunition hoists, simulator and initial support. The six versatile SGPV-LCS ships are being built by the shipyard to a design by the French DCNS Group.
They are designed for a wide range of missions including combat, anti-piracy, counter-terrorism, anti-smuggling operations, search and rescue, humanitarian support, as well as the protection of fisheries and oil and gas platforms.
The first gun will be built at Karlskoga in Sweden, and will be ready for delivery to the Boustead Naval Shipyard in the middle of 2015.
The JV company has operations in Kuala Lumpur, Lumut and Kota Kinabalu to carry out maintenance and spares support for the Royal Malaysian Navy and the Malaysian Maritime Enforcement Agency.




This content is provided by FMT content partner The Malaysian Reserve.

http://bousteadholdings.listedcompany.com/newsroom/BSTEAD140313a.pdf

Boustead Heavy Industries - Confirmed RM9bil LCS contract

BHIC’s 21%-owned Boustead Naval Shipyard (BNS) has received an amended acceptance letter from the Ministry of Defence Malaysia for the earlier award back in December 2011 to design, construct, equip, test and deliver 6 Second-Generation Patrol Vessels named as Littoral Combatant Ships (LCS) for the Royal Malaysian Navy.
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 This announcement essentially confirms that the contract value has been fixed at RM9bil compared to an earlier indicative ceiling price of the same sum. Also, advance payment of RM700mil will be made in stages.

Currently, the group has gross and net order books of RM10bil and RM3bil respectively. But we expect further news flow of new contracts in the pipeline pending the announcement of the 2014 Budget, and against the backdrop of the Lahad Datu incursion earlier this year which highlights the dire need for tighter security measures.

The upcoming fresh orders may comprise two patrol vessels potentially worth RM1bil and 25 additional fast interceptor crafts valued at RM330mil for the Malaysian Maritime Enforcement Agency.



Boustead Heavy Industries - Supplemental contracts to Gen2 LCS Hold


BHIC’s 51%-owned Contraves Advanced Devices Sdn Bhd (CAD) has been awarded two supplemental contracts worth up to RM509mil by the group’s 21%-owned  Boustead Naval Shipyard Sdn Bhd (BNS) to procure, engineer, and integrate the DCNS SETIS Combat Management System, a Combined Integrated Communication System and Communications ESM System over a 10-year period.

- These supplemental agreements account for 33% of BNS’ earlier letters of award in April this year to CAD worth up to RM1.5bil to undertake  engineering, procurement and integration works encompassing the DCNS SETIS Combat Management System and the Rheinmetall Fire Control System. These scopes of works are part of BNS’ existing RM9bil contract to build six second generation of patrol vessels called littoral combat ships (LCS).

OSI, Boustead Contracted for Royal Malaysian Navy LCS


OSI Maritime Systems (OSI) is announced the signing of a Letter of Award with Boustead Naval Shipyard (BNS), Malaysia. Under the Littoral Combat Ship (LCS) program, BNS will build six Gowind-class corvettes for the Royal Malaysian Navy. Under the terms of this agreement, OSI will deliver six Integrated Navigation and Tactical Systems (INTS); included are the company’s world leading ECPINS-W and Warship-AIS products, specifically designed for naval operations.



ADVANCED DEGAUSSING ORDER AWARD


The contract ‘letter of award’ LOA for the Advanced Degaussing Systems for the Royal Malaysian Navy´s new Littoral Combat Ships (LCS) programme was granted to Polyamp AB, Sweden, the 15th April 2013 by Boustead Naval Shipyard Sdn. Bhd. for an undisclosed order sum. The order will be delivered by Polyamp in Sweden while made in cooperation with Malaysian Defense Industry; Dayatech Merine SDN BHD which are Polyamp local partner company in Malaysia. In the order is also included technical management, training and initial spare parts. Polyamp will utilize its successful ADG systems and ADG parts previous delivered for USN CVN77 Carrier, San Antonio Class LPDs, Royal Danish Navy Absalon Class Flexible Support ships, Peter Willemoe Frigate Class and the Royal Swedish Navy Visby Class. 
Contract task commence immediately, consequently the Kick-off meeting was held at Boustead Naval Shipyard Head Office in Kuala Lumpur, Malaysia the 11th-12th May 2013.

lcs-loa-kal

Head, SGPV-LCS programme Capt.(Rtd.) Anuar Murad, Boustead Naval Shipyard and Polyamp CEO Eric Östlund is shaking hand flanked by Polyamp Local Representative Engineering Director Theya Nith Ramasy, Daytech Merine SDN BHD and Polyamp VP – Per Ennerfors (left)

CONTRAVES AWARDED TO SUPPLY CAPTAS

BHIC announced that its subsidiary Contraves Advanced Devices Sdn Bhd (“CAD”) has received 2 letters of award (LOA) from 20% associate, Boustead Naval Shipyard (BNS) (which is also a subsidiary of Boustead Holding which in turn is BHIC Major shareholder), to supply i) Thales Underwater Systems CAPTAS Towed Array Sonar complete with simulator, and ii) Thales Nederland BV SMART-S Main Surveillance Radar with simulators for the Littoral Combat Ships Programme at a total value of RM287m and RM228m respectively.
The contract duration is up to 10 years from the commencement date.
The awards are expected to have positive impact from FY13 onwards.

Comment

We are neutral on the awards and it is related to the mobilisation of the RM9bn littoral combat ship (LCS) contract held under BNS.
Speed of contract mobilisation is the critical factor in BHIC’s earnings and valuation. We believe contracts are in the process of being mobilisation, however, when the contracts will be realised on the bottom line is still nebulous. The contract time frame is 10 years which suggests that profit contributions will be spread thin over the period. We are cautiously optimistic going forward and continue to monitor the situation closely.
We maintain that, being one of 7 Petronas licence fabricators, future earnings maybe enhanced by spill over jobs from offshore O&G fabrication work if it is able to show good track record in executing existing jobs and protect margins.

Risks

  • Sacrificed profits while in technology transfer phase.
  • Delays in contract disbursement.
  • Potential write downs from selling chemical tankers.