We refer to the announcements made on 16 December 2011, 1 October 2013, 17 July 2014 and 10 May 2021 with regard to the receipt of a letter of acceptance  ("the Letter") from the Ministry of Defence Malaysia ("MoD") (acting on behalf of the Government of Malaysia) by Boustead Naval Shipyard Sdn Bhd ("BNS"), a major associate of Boustead Heavy Industries Corporation Berhad (“BHIC" or “Company”), the signing of the corresponding contract  for the design, construct, equip, install, commission, integrate, test and trials, and deliver six (6) units of Second Generation Patrol Vessels with Littoral Combat Ship (LCS) capability for the Royal Malaysian Navy (“the Contract”) at a contract value of RM9 billion (“Project”) and the Cabinet approval in respect of the resumption of the Project.

The Company now wishes to announce that on 31 May 2022, BNS and MoD have entered into a supplementary contract (“Supplementary Contract”) to remobilise the Project, amongst others, to resume payment to creditors (Original Equipment Manufacturers, vendors and financial institutions). Apart from the activities to be undertaken by BNS towards remobilising the Project, there are no significant differences between the substance of the Contract and the Supplementary Contract.

Further developments on the above matter will be announced to Bursa Malaysia Securities Berhad in due course.

Save for the interest of Boustead Holdings Berhad and Lembaga Tabung Angkatan Tentera (“LTAT”) in BNS and BHIC, Dato’ Ahmad Nazim Abd Rahman and Encik Izaddeen Daud being the Directors of BHIC and BNS, and Tan Sri Dato’ Wira Aziah Ali being the Director of BHIC and BNS, none of the directors or substantial shareholders of the Company, or persons connected with them have any interest, direct or indirect, in the Contract.

This announcement is dated 2 June 2022.