1. Introduction
The Board of Directors of Malaysia Marine and Heavy Engineering Holdings Berhad ("MHB" or "the Company") wishes to announce that Malaysia Marine and Heavy Engineering Sdn Bhd ("MMHE"), a wholly owned and major subsidiary of the Company, had on 8 April 2026 entered into a Memorandum of Understanding ("MoU") with Hanwha Power Systems Co. Ltd. ("HPS"), a globally renowned company within South Korea's Hanwha Group. The purpose of the MoU is to establish a long-term collaboration to pursue and develop selective newbuilding as well as conversion and retrofit projects for existing vessels.
2. Salient Terms
The salient terms of the MoU are as follows: -
(a) MHB will serve as HPS's strategic shipyard partner in the region, providing construction and installation capabilities to deliver integrated and end-to-end solutions;
(b) HPS will contribute its Engineering and Procurement expertise to support selective newbuilding, conversion and retrofit projects including areas of mutual strategic value; and
(c) the MoU shall remain valid and effective for two (2) years from the execution date with the option to be renewed for a successive one (1) year, subject to written mutual agreement of both Parties.
3. Risk Factors
The risk factors involved in the MoU are expected to be minimal. In the event MMHE enters into a definitive agreement with HPS, the Board and Management will exercise due care in considering the associated risks and benefits.
4. Financial Effects
The MoU is not expected to have any material effect on the earnings per share, net assets per share, gearing, share capital and shareholding structure of the Company for the financial year ending 31 December 2026.
5. Directors' and Major Shareholders' Interests
None of the Directors and/or major shareholders and/or persons connected with the Directors and/or major shareholders of MHB has any direct or indirect interest in the MoU.
6. Directors' Statement
The Board of Directors, upon considering all the relevant aspects of the MoU, is of the opinion that entering the MoU is in the best interest of the Company.
This announcement is dated 17 April 2026.