After nearly 27 years of restoration the 23-foot long boat was let loose at Bewl Water reservoir in Lamberhurst, Kent, with Karl Foulkes-Halbard at the wheel.
Having enlisted in the British Army for World War One as a motorcycle dispatch rider, Sir Malcolm transferred his skills to Grand Prix motor racing in the 1920s. He set various land speed records, becoming the first person to break the 300mph mark at the Bonneville Salt Flats in Utah in 1935 with a speed of 301mph.
Sir Malcolm, who died in 1948 aged 63, switched attention to water and set three world records in the 1930s.
In 1937 Lake Maggiore on the Swiss-Italian border proved a popular destination with two water-speed records set before a third in 1938 at Lake Hallwyl in Switzerland, reaching 130.91mph.
The boat, which was originally built on the Isle of Wight, was bought by the Foulkes-Halbard family in 1988 and has been par of the family’s collection at Filching Manor Motor Museum near Eastbourne.
Due to the extensive damage to the craft various repairs have been carried out making it water-ready.