Five Year Contract For Sukhoi’s Simulators

SHAH ALAM: Five-year contract for Sukhoi’s simulators. Publicly listed HeiTech Padu Bhd has announced that it had been awarded a RM67 million, five-year contract to operate and maintain the Su-30MKM flight simulators at the RMAF airbase in Gong Kedak. The company made the announcement to Bursa Malaysia on September 9, 2022.

The announcement from HeiTech Padu:

ACCEPTANCE ON THE LETTER OF AWARD (“LOA”) FOR “KONTRAK SENGGARAAN TACTICAL
OPERATIONAL FLIGHT TRAINER (“TOFT”), COMPUTER BASED TRAINING (“CBT”), FASILITI DAN
ENHANCE TRAINING AID SYSTEM (“ETAS”) DI BANGUNAN SIMULATOR SUKHOI 30-MKM, AIR
DEFENCE SIMULATOR SYSTEM (“ADSS”) SERTA PENINGKATAN SISTEM SEDIA ADA FROM
MINISTRY OF DEFENCE, MALAYSIA.”
1. INTRODUCTION
The Board of Directors’ of HeiTech Padu Berhad (“HeiTech” or “the Company”) are pleased to
announce that the Company has on 8 September 2022 signed the LOA from Ministry of Defence,
Malaysia (“Mindef”) for “Kontrak Senggaraan Tactical Operational Flight Trainer, Computer Based
Training, Fasiliti Dan Enhance Training Aid System Di Bangunan Simulator Sukhoi 30-MKM, Air
Defence Simulator System Serta Peningkatan Sistem Sedia Ada (“Contract”).
2. THE CONTRACT VALUE
The Contract Value is RM66,842,847.82 (Ringgit Malaysia Sixty Six Million Eight Hundred
Forty Two Thousand Eight Hundred Forty Seven Thousand and Cents Eighty Two Only).
3. DURATION OF THE CONTRACT
The Contract is for a period of 5 years and commencing from the date the LOA is signed by the
Company.
4. FINANCIAL EFFECTS
The Contract will have no effect on the issued share capital and substantial shareholders’
shareholdings of the Company.
The Contract is expected to have positive effects on future earnings, net assets and earnings per
share of HeiTech. Nevertheless, the Contract will have no material effect on the dividend policy,
share capital and substantial shareholdings of the Company for the financial year ending 31
December 2022.
5. THE RISKS IN RELATION TO THE CONTRACT
The risks are normal risks encountered by companies undertaking a similar endeavour and the
Company has taken the necessary steps to protect itself and to mitigate the risks as and when they
occur.
6. INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS AND/OR PERSONS CONNECTED
WITH THEM
None of the Directors or major shareholders or any persons connected to the Directors or major
shareholders of HeiTech has any interest, either direct or indirect in the above Contract.
7. STATEMENT OF THE DIRECTORS
The Board of Directors is of the opinion that the execution of the Contract is in the ordinary course
of business and is in the best interest of the Company.
This announcement is dated 9 September 2022

The simulators were part of the Sukhoi contract in 2003 though RMAF has spoken very little about it. From previous press releases we know that HeiTech Padu worked with CAE, a multi-national company which originated from Canada which also worked with RMAF for its Fulcrum simulator.

According to a report by Bernama in 2011, HeiTech Padu was supposed to run the simulator from 2010 to 2020 under a 20-year contract under the Private Financing Initiative (PFI) concept. Checks on the Eperolehan website showed that HeiTech Padu has been given a couple of small contracts to maintain some of the simulators at the centre for the last two years.

It is likely with a long term contract, HeiTech Padu will be able to upgrade the simulators which were manufactured some 20 years ago. It must be noted that the RMAF fast jet fleet are equipped with flight simulators from the Hawks to the Hornets.

— Malaysian Defence

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