Tuesday 23 May 2017

KD PERDANA SAGA :Navy Chief Confirms Missing Ship Has Been Located, Crewmen Safe

KUALA LUMPUR: Chief of Navy, Admiral Tan Sri Ahmad Kamarulzaman Bin Haji Ahmad Badaruddin, confirmed that the missing KD Perdana ship has been located following a rigorous search and rescue (SAR) operation.
The admiral shared the news via Twitter whilst expressing his gratitude towards those who played an immense role in locating the ship along with its nine crew members.
Last night, the Royal Malaysian Navy (RMN) confirmed in a statement that the KD Perdana ship reportedly went missing on Saturday after RMN lost contact with their Boarding Team, Bernama reported.
It’s also reported that the events occurred whilst the nine crew members were on an operation against illegal fisherman in the waters of Tanjung Sedili, Johor on Saturday, May 20.
Kudos to our brave navy on a job well done!
- Malaysian Digest


9 crew members on board KD Perdana found safe


10
The boat was detected about 90 nautical miles east of Kuantan
KUALA LUMPUR: Prime Minister Najib Razak in a Facebook post last night said all nine crew members on board the missing boat belonging to the Royal Malaysian Navy’s (RMN) KD Perdana vessel, have been found safe.
“Alhamdulillah, all nine crew members of KD Perdana’s boat have been found safe.
“Well done to the search and rescue team and thanks to all who helped out,” he said in the post.
Earlier, Navy chief Admiral Ahmad Kamarulzaman Ahmad Badaruddin confirmed that the boat was detected about 90 nautical miles east of Kuantan.
It was detected by a ‘Beechcraft’ aircraft belonging to the Royal Malaysian Air Force (RMAF) following an initial discovery by a merchant ship.
KD Perdana reportedly lost contact with the boat which was conducting a routine maritime patrol to drive out foreign fishing boats from Sedili on Saturday.
— Bernama

Crew members found safe, investigation on KD Perdana to be continued

The nine crew members of KD Perdana were found last night at 90 nautical miles from the East of Kuantan by a trader boat

KD Perdana and the nine crew members on board were found last night at 90 nautical miles from the East of Kuantan by a trader boat.
KUALA LUMPUR – The Royal Malaysian Navy (RMN) has utilised its assets including the EC-725 helicopters to the location where the nine crew members of KD Perdana were found last night at 90 nautical miles from the East of Kuantan by a trader boat.
Chief of RMN, Admiral Tan Sri Ahmad Kamarulzaman Ahmad Badaruddin said, the RMN received the information about the sighting of KD Perdana about 4.00 P.M yesterday.
Following that, a RMN Beechcraft was sent to the location. The aircraft reported at 7.07 P.M. that the boat and nine crew members of KD Perdana were found safe.
Alhamdulillah, they managed to utilise all trainings they received in crucial moments like this.
“Although they had drifted and cut off supplies for a very long period, they still maintained their calms and knew what to do,” he said.
Nevertheless, we will investigate on the actual reason the boat was cut off from communication and we cannot confirm to any speculation now.
He added, a thorough investigation on the incident will be conducted where all crew members will be interviewed later. At this moment, the RMN’s main mission is to bring them back safely.
“I’d like to extend my deepest appreciation to all involved in the search and rescue, especially the Maritime Enforcement Agency (MEA), the fishermen, my colleagues in Singapore, Indonesia and Vietnam who joined hands in searching the RMN boat,” he said.
On 9.30 A.M. last Saturday, KD Perdana tracked 10 Vietnamese fishermen boat at the waters of Sedili.
Five of them were successfully chased out of the Exclusive Economy Zone (EEZ), while the other five headed towards the north of Tanjung Sedili.
At 1.00 P.M., five foreign fishermen boats were located by patrol boat, and they were instructed to investigate two foreign fishermen boats moving West. The KD Perdana went on a chase with three other boats.
At 1.30 P.M., KD Perdana lost contact with the other boats via walkie talkie. A search operation was done before it became official at 7.30 P.M. last night.
Pada 1.30 tengah hari, KD Perdana gagal menghubungi bot berkenaan melalui walkie talkie dan memulakan operasi pencarian sebelum operasi dimulakan secara rasmi pada 7.30 P.M. on Sunday – MalaysiaGazette

Monday 22 May 2017

Malaysia mulls naval upgrades amid IS threat, South China Sea standoff

Malaysia is gunning for a revamp of its aging naval fleet, as countries in the region prepare to face threats from the influx of Islamic State (IS) militants fleeing Mosul, and from rising tensions in the South China Sea.
Defence spending in the Asia Pacific region is expected to hit US$250 billion (RM1 trillion) from 2016-20, IHS Janes Defence Weekly said in December, and Malaysia intends to improve on its capabilities alongside other states in the hotly contested South China Sea, even as its defence budget narrows.
Malaysia's navy aims to replace all 50 vessels in its aging fleet as the country cut its total defence budget by 12.7% to RM15.1 billion this year. That will be led by the procurement of four littoral mission ships (LMS) built in collaboration with China.
"The LMS are designed for many aspects of maritime security such as dealing with cross-border crime, piracy, anti-terrorism and search and rescue operations," Malaysian navy chief Admiral Tan Sri Ahmad Kamarulzaman Ahmad Badaruddin told Reuters in an interview.
"These ships would be very capable of dealing with the threat posed by Daesh and other maritime security concerns," Kamarulzaman said, referring to the Arabic acronym for the IS.
Malaysia is expected to formalise the LMS deal with China at the Langkawi International Maritime and Aerospace Exhibition (LIMA) this week to build four LMS and acquire the technology to construct more of the ships at home. The navy hopes this will enable them to eventually obtain a total of 18 LMS.
Plans to acquire four LMS from China were first announced in November.
Over 500 exhibitors from 36 countries will parade their wares at this year's LIMA, which is held every two years in Langkawi.
Kamarulzaman said they are also in the final stages of negotiations with French shipbuilder DCNS to launch a programme to build the larger littoral combat ships (LCS), which he said should be formally announced in August or September this year.
The navy is also looking to acquire three new multi-role support ships (MRSS) and two more submarines to round off the fleet.
COMPETING NEEDS
The naval build-up in the region comes as tensions rise in the South China Sea, where Beijing's creation of artificial islands has alarmed some Asian countries and stoked friction between China's navy and the US air force.
China claims most of the South China Sea, through which US$5 trillion in ship-borne trade passes every year. The Philippines, Vietnam, Malaysia, Taiwan and Brunei also have overlapping claims.
Under President Joko Widodo, Indonesia's total defence spending jumped around 26%, and last month Thailand's military government approved a 13.5 billion baht (US$389.05 million) submarine deal with China after putting the purchase on hold last year.
Members of the Association of Southeast Asian Nations (ASEAN), however, need to share intelligence if they want their big-ticket buys to be of any use, said Shahriman Lockman, a senior analyst Institute of Strategic and International Studies.
Shahriman said asset upgrades like Malaysia's LMS programme are important, but stressed that such high-value procurements would end up sailing blindly without strong intelligence sharing among the 10 Asean members, supported by a wide network of surveillance equipment.
"We're talking military patrol aircraft, radars, drones ... and in bigger numbers. Quantity is a quality of its own. It doesn't make sense to aspire to top-of-the-range equipment but in small numbers," Shahriman said.
"Equipment that contributes to maritime domain awareness ought to be the priority for all. You can't fight what you can't see." — Reuters

Posted on 21 March 2017 - 08:54am on The Sun Daily

RMN Chief: LMS capable of conducting 80% mission for LCS


LANGKAWI: The Littoral Mission Ship (LMS) purchased by the Royal Malaysian Navy (RMN) is capable of conducting 80% of the missions for the Littoral Combat Ship (LCS).
RMN Chief Tan Sri Ahmad Kamarulzaman Ahmad Badaruddin said it was also much cheaper than the LCS.
"The purchase of the LMS is subject to our budget but it is not an asset which can be compared to the LCS which is used for combat, war and such, and is of course, more expensive because the LCS' capability is much higher," he told reporters when met at Resort World Langkawi today.
The four LMS which will bought from China will be jointly built by Boustead Naval Shipyard Sdn Bhd and China Shipbuilding & Offshore International Co Ltd.
The cost of purchasing the ships will be fully borne by the RMN under the Transformation 15-5 Programme.
The programme is part of several initiatives planned for 'saving efficiency' whereby RMN will replace old ships which require high operating and maintenance costs, with new, more sophisticated ships with lower operating and maintenance cost.
However, Ahmad Kamarulzaman said, depending on need and affordability, the RMN hoped to increase the capabilities of the LMS by adding guided missiles to it to increase combat strength.
"What is more important now is the maritime aspect, such as the threat of encroachment from militants, cross-border crimes, and increasing our capabilities especially in the Sulu Sea," he said.
When completed, the LMS will be based at Maritime Region Two or the Armada 6 in the Sulu Sea to guard national waters. — Bernama

Procurement of LMS necessary to replace ageing vessels currently used by RMN


The Sun Daily Posted on 8 November 2016 - 05:22pmThe procurement of Littoral Mission Ships (LMS) from China is necessary to replace the ageing and high maintenance vessels currently being used by the Royal Malaysian Navy (RMN).
Defence Minister Datuk Seri Hishammuddin Hussein said many of the RMN armada have been in operation for more than 30 years and not cost effective to be used anymore.
He also dismissed claims of the exorbitant cost to procure the four LMS, stating that the value to build the ships are estimated to be around RM1 billion.
"The current armada is currently beyond the age of 30. Therefore, the operational cost increases every year," he said.
"The procurement is important to ensure RMN's assets are capable to perform operational duties continuously," he told Dewan Rakyat during the Minister's Question Time.
He was replying to Datuk Raime Unggi (BN - Tenom) who asked the importance of LMS purchase following a memorandum of understanding between Malaysia and China.
Prime Minister Datuk Seri Najib Abdul Razak had announced the purchase of four LMs during his recent official visit to China.
However, some had raised allegations that the procurement and construction of the ships would cost Malaysia RM3 billion.
Hishammuddin said the construction of the ships would be handled by Malaysian firm Boustead Naval Shipyard and China Shipbuilding and Offshore International Company from China.
He added the bilateral cooperation would improve the ability of local firm to become more competitive in defence industry.
"Many of the our current threats coming from non-state actors such as the Islamic State," he said.
"This has made the LMS as a priority to strengthen the RMN," he added.
He said RMN assets that were no longer cost effective would be unaccredited and decommissioned.
"It would be decommissioned in phases based on the current government policies," he added.

What are our defence priorities?


FRENCH President Francois Hollande was here recently to persuade the government to buy the Dassault Aviation SA's Rafale fighter jets.
The Rafale is seen as a frontrunner as Malaysia looks to buy up to 18 jets in a deal potentially worth more than RM9 billion.
The French have even started advertising their Rafale fighter jets in newspapers.
British Aerospace is also competing for a slice of Malaysia's defence pie, trying to flog their Typhoons in a RM10 billion deal they hope to clinch with a "Buy 1-Get 1 free" offer.
The French are desperate to sell their arms because 60% of their exports are made up of arms. They obviously have not heeded the wise words of their literateur Albert Camus who said, "Peace is the only battle worth waging".
The key question is whether Malaysia actually needs any of these fighter jets, considering their cost is spiralling way out of control and such jets are quickly obsolete? Malaysian taxpayers need to be wary of this record breaking arms deal.
RM500m a fighter jet?
According to Bank Negara, Malaysia's total external debt has risen to RM909 billion in 2016, which is equal to 73.9% of the country's gross domestic product (GDP).
This raises a red flag about whether we can afford such levels of defence spending and importantly, is what we are spending allocated wisely on arms priorities considering our debt situation?
Taxpayers deserve answers to these key questions:
» Are multi-role combat aircraft our priority considering the latest F35s cost at least half a billion ringgit a piece?
» And if the F35 Raptors cost more than RM500 million, should these French Rafaels similarly cost more than RM500 million?
» Can we see some competitive offers from other manufacturers?
Our Defence Ministry says it is planning to replace the RMAF squadron of Russian MiG-29 combat planes.
Can we have a report on the relative performances of our MiGs, Sukhois, Hawks and F18s?
Can we also have an audit report on the compatibility of our Russian, British, US (and now French?) fighter jets and especially the compatibility of their avionic systems?
What lessons do our past purchase choices hold for our future fighter jet procurements?
The prime minister has said Malaysia's defence spending will continue to grow as our armed forces have embarked on a long-term plan to modernise and upgrade their equipment and that RM26 billion had been allocated under the 11th Malaysia Plan for defence, public order and enforcement.
Who are our enemies and what appropriate weaponry do we need?
One would think that this is the first question the Ministry of Defence would ask in the multi-billion decisions to procure armaments.
Yet our National Defence Policy has never been properly debated in Parliament.
One of the rare moments we got to use our F18 fighter bombers and Hawk 208 fighter jets was against those invaders described by the defence minister as a "rag-tag army" at Lahad Datu a few years ago.
Wouldn't armoured cars and tanks and mortars have been sufficient in that 4 sq km area of land against that motley crew?
What are our priorities for naval defence?
When the bombardment began at Lahad Datu, it was mentioned that the navy had formed a cordon to prevent the intruders from getting away.
It was clear that there never was a cordon to prevent any intruders from getting INTO Sabah all these years.
Looking at the geography of the area, our two submarines built by the French DCNS sitting pretty at Sepanggar Bay and our six New Generation Patrol Vessels (costing RM9 billion) were not the most suitable vessels in the circumstances.
It brings to mind the question of the appropriate vessels that should be the priority for our navy.
As part of the RM5 billion arms deal signed between Tun Dr Mahathir Mohamad and Margaret Thatcher in 1989, we procured two corvettes built by the Yarrow
shipbuilders costing RM2.2 billion.
At the time, the Royal Malaysian Navy said it required 16 offshore patrol vessels but due to financial constraints, the RMN could only afford four or five of these locally-built OPVs.
Mindef had budgeted RM85 million per OPV. Now, in the light of the latest incident at Lahad Datu, Malaysians will be in a better position to see the appropriate vessels that would be more suitable to secure the Sabah coastline.
Before the Lahad Datu incident, our main "enemies" testing the capacity of our armed forces were the pirates in the South China Sea and the Straits of Malacca.
There were no bigger "enemies" than those seafaring marauders.
Are state-of-the-art fighter jets and submarines the appropriate weaponry against pirates?
These would likewise be inappropriate if "international terrorists" and suicide bombers choose to target Malaysia.
Rising tensions in the South China Sea
We are now told that Malaysia wants to revamp of its ageing naval fleet in the face of threats from rising tensions in the South China Sea.
Malaysia's navy aims to replace all 50 vessels in its fleet and this will be led by the procurement of four littoral mission ships (LMS) built in collaboration with China. The deal is worth more than RM1 billion.
One would imagine that by its reference to "rising tensions", the government is referring to China's claims to the disputed islands in the South China Sea.
So if China is seen as a possible "enemy", should China have a hand in the building of these littoral mission ships? It seems a strange logic in justifying the purchase of these four warships.
Or are the Asean countries also seen as possible "enemies" since there is an unspoken arms race among the Asean countries through the years which merely exhausts the hard-earned resources of our peoples.
Indonesia's total defence spending has jumped around 26%, and Thailand's military government has just approved a US$389.05 million submarine deal with China.
The Malaysian Navy is reported to be in the final stages of negotiations with French shipbuilder DCNS to build the larger littoral combat ships (LCS), three new multi-role support ships (MRSS) and two more submarines.
Knowing the bill for the two Scorpene submarines was more than RM7 billion, Malaysian taxpayers should be prepared for the worst.
So, exactly how are decisions made in the Ministry of Defence to buy the submarines, the corvettes, the frigates instead of more patrol boats to guard our coastlines?
With our external debt spiralling towards RM1 trillion, taxpayers would do well to question the government's defence priorities and to call on the government to justify the next multi-billion arms procurements with full transparency.
Malaysians need to be reminded that with RM1 billion, we can build at least 1,000 rural schools or 100 district hospitals.
by Kua Kia Soong is Suaram's adviser.
Posted on 30 March 2017 - 05:16pm





9 crew of boarding party KD PERDANA went missing

Star Online Monday, 22 May 2017 | MYT 10:45 AM

Nine Navy staff missing off Johor waters



Nine Navy personnel have been missing since Wednesday after their boat lost contact during a routine patrol in waters off Johor.
The Navy said the boat with an officer and eight personnel was patrolling the waters together with fast attack craft KD Perdana off Tanjung Sedili when both vessels lost communication with each other.
"The Royal Malaysian Navy has confirmed an incident where KD Perdana lost communication with a boat ferrying a Boarding Team in the waters of Sedili at 201300H (8.13pm) on Wednesday," said a Navy statement on Sunday.
Search operations started at 9.19pm on the day the boat went missing and has been expanded with more vessels.
KD Perdana, a fast attack craft, and the boat were in Tanjung Sedili waters for maritime routine patrols. Prior to that, the vessels were involved in operations against foreign fishing boats.
The last known coordinates of the boat is 29 nautical miles east of Tanjung Sedili Besar.
The statement said the missing personnel are believed to be in nearby coasts or taking shelter with fishermen in the area.

9 crew members on board KD Perdana missing


NINE Royal Malaysian Navy crew members are feared missing after their ship lost contact during operations last night to prevent Vietnamese fishing vessels from entering Malaysian waters.
It is understood that the crew of KD Perdana could not be contacted since 8.13pm and were last detected 29 nautical miles from Tanjung Sedili in Johor, Utusan Online reported. 
“The search and rescue mission was conducted immediately before stopping to refuel at 9.16pm. It is understood the search continued at 9.19pm,” the RMN said. 
The navy said it will be issuing a press statement on the incident in due time. – May 22, 2017.


Friday 19 May 2017

Provisions and MSS payments hurt BHIC earnings

Saturday, 14 May 2016
The Star Online

KUALA LUMPUR: Boustead Heavy Industries Corp Bhd (BHIC) posted a net loss RM19.04mil for its first quarter ended March 31 from a net profit of RM8.4mil a year ago due to shipbuilding project provisions and mutual separation scheme (MSS) payment.
The quarter’s revenue marginally increased to RM62.9mil from RM61.09mil in the same corresponding quarter last year.
Revenue from defence-related maintenance, repair and overhaul (MRO) activities contributed to the Group’s revenue in the current quarter.
“The associates posted higher losses of RM10.8mil in the current quarter arising primarily from provision for variation orders for a shipbuilding project and payment made under the mutual separation scheme. The challenging operating environment arising from the global economic downturn, low oil price and weak ringgit looks set to persist in the near future.
“Nevertheless, we take a positive outlook of the group’s performance in subsequent quarters as we continue with our transformational initiatives, operational improvement and rationalisation exercise,” said BHIC executive deputy chairman and managing director Tan Sri Ahmad Ramli Mohd Nor in a statement yesterday.
He added these were expected to result in an improved financial performance moving forward.

before

Wednesday, 9 November 2016 | MYT 11:23 PM

BHIC’s Q3 earnings almost quadruple due to right-sizing measures

KUALA LUMPUR: Boustead Heavy Industries Corp Bhd’s (BHIC) earnings almost quadrupled to RM14.88mil in the third quarter ended Sept 30 partly due to an internal reorganisation exercise that included hiving off its loss-making chartering segment.

In a filing with Bursa Malaysia, it said profit from discontinued operation was RM2.4mil versus a loss of RM6.79mil a year earlier.

“Under discontinued operation, the chartering segment posted a higher profit of RM2.4mil due to over accrual of operating expenses pursuant to the reconciliation of expenses with the former ship manager,” said the subsidiary of conglomerate Boustead Holdings Bhd

Prior to the disposal of three chemical tankers in May, the chartering segment had incurred losses of RM6.84mil during the year owing to higher direct costs incurred by the chemical tankers under the previous spot charter arrangement and loss on disposal of the tankers.

“However, the losses were cushioned by the reversal of accrual of operating expenses such as crew wages and lubricant oils pursuant to the reconciliation of expenses,” BHIC said.

BHIC achieved its 277.5% jump in earnings on the back of an 11.1% increase in revenue to RM64.31mi.

For the nine-month cumulative period, the company’s earnings fell slightly to RM21.1mil from RM21.52mil previously although revenue was up by 0.3% to RM197.0mil.

BHIC said in a press statement that the heavy engineering segment contributed positively to the group mainly via defence-related maintenance, repair and overhaul (MRO) projects.

The joint venture (JV) companies involved in the submarine project as well as supply and delivery of guns also posted improved profits in the current quarter.  

BHIC executive deputy chairman and managing director Tan Sri Ahmad Ramli Mohd Nor said: “BHIC’s performance for the third quarter of the year is in line with our expectation of positive results amidst a challenging operating environment, arising from the group’s on-going transformation initiative to tighten operational efficiencies coupled with a strong focus on our core businesses and competencies,

“Specific right-sizing initiatives, based on the group’s established performance appraisal processes are currently in progress as part of our efforts to enhance and increase productivity at all levels.”

Going forward, BHIC is optimistic on its outlook given recent developments, which include the receipt of a non-binding letter of intent dated Oct 26 from the Defence Ministry for the supply of four littoral mission ships for the Malaysian Navy.


BHIC’s unit to pay Sealink RM6.3mil to settle four-year dispute

Sealink International Bhd has settled a four-year dispute with Boustead Heavy Industries Corp Bhd’s unit Boustead Penang Shipyard Sdn Bhd (BPS) over a shipbuilding contract and is accepting a payment of US$1.5mil (RM6.32mil).

The offshore marine support vessel owner and operator told Bursa Malaysia that BPS proposed and Sealink had accepted the settlement sum as full and final settlement of all claims and counterclaims arising out of the shipbuilding contract dated April 3, 2008, between BPS and its unit Sealink Sdn Bhd.

Sealink began arbitration proceedings against BPS in December 2012 over the contract that was signed prior to Sealink’s July 29, 2008 listing on Bursa Malaysia.

Under the US$32.9mil contract, BPS was to build for Sealink two 7,000 dwt oil or chemical carriers.

Sealink later claimed against BPS the sum of US$4.935mil (RM20.8mil) which was to be refunded and/or paid to it under the contract and/or for interest payable by BPS to it and/or for losses and/or expenses incurred by Sealink pursuant to breaches of the contract.

It inked a settlement agreement with BPS on Wednesday. Each party is to bear its own legal costs in relation to the claims and counterclaims, including but not limited to the costs incurred in the arbitration under the Kuala Lumpur Regional Centre.

The US$1.5mil payment (free of all bank and/or remittance charges) will be made within 14 days from the execution of the agreement.

Sealink said the settlement would be positive for the company as it would receive and recognise a gain of US$1.5mil. “The disputed amounts involved with BPS had previously been written off in the books of the company,” it added.

The company, which incurred after-tax losses of RM15.08mil for the first-half year ended June 30, 2016, said the receipt of the settlement sum would also improve the cash flow position of Sealink Sdn Bhd.

One of Sealink's offshore support vessels in action.

Thursday, 13 October 2016 The star Online

BY M. HAFIDZ MAHPAR

Boustead Heavy Industries in talks to supply warships

The Star Online 
Wednesday, 5 April 2017 | MYT 8:42 PM




PETALING JAYA: Boustead Heavy Industries Corp Bhd (BHIC), a company involved in maritime, defence and heavy engineering industry, is in talks with several regional armed forces to supply military ships.

Managing director Tan Sri Ahmad Ramli Mohd Nor said the interest cropped up following its participation in key defence and security events, such as the recent Langkawi International Maritime and Aerospace Exhibition and Defence Services Asia.

“It provided the platform to market our products and services to an international audience, in line with our aspiration to explore regional business opportunities,” he told reporters after the company’s AGM on Wednesday.

“With a solid track record in delivering and servicing naval vessels, we are looking to explore new prospects to expand our business internationally and meet the requirements of regional navies,” he said.

He also said the company expected this year’s performance to be encouraging, especially with the latest addition to its orderbook, a contract with the government worth RM1.17bil to build four units of littoral mission ships for the Royal Malaysian Navy.

“We are encouraged by this ‘vote of confidence’ and look forward to maintaining our position as the premier defence contractor in Malaysia,” he added.

Ahmad Ramli said with its ongoing strategic transformation plan, the company was optimistic sustaining its positive momentum and deliver solid results by sharpening its operational efficiencies while pursuing prospects for growth.

Other contracts that would drive the company’s revenue this year included existing contracts to build six littoral combat ships, as well as contract for submarine services involving major overhaul works, said Ahmad Ramli.

The company’s orderbook stood at RM7.5bil as of December last year, with a large chunk worth RM6.3bil coming from its shipyard business.

He added that government contracts made up 90% of its orderbook with the balance contributed by commercial buyers.

For the financial year ended Dec 31, 2016 (FY16), BHIC recorded a pre-tax profit of RM82mil against a pre-tax loss of RM3.94mil in FY15.

Revenue rose to RM307.51mil from RM265.64mil previously

R