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, had on 18 November 2025 entered into a Framework Agreement with MODEC's Mooring Solution Business Unit ("MSBU") for a long-term collaboration on SOFEC branded products fabrication (the "Framework Agreement").

The Framework Agreement follows the initial contract under which MMHE was selected to fabricate the internal turret mooring system for a Floating Liquefied Natural Gas ("FLNG") project, reflecting MHB's fabrication expertise and growing role in supporting the execution of global FLNG and Floating Production Storage and Offloading ("FPSO") developments.

Consent from MSBU for MHB to release the information on the Framework Agreement and related information to Bursa Malaysia Securities Berhad was obtained on 23 April 2026.
 

2.  SALIENT TERMS 

MMHE and MSBU are collectively referred to as "Parties" and each is a "Party".

The salient terms of the Framework Agreement are as follows:-

(a)    the ultimate purpose is to promote efficiency, competitiveness and consistent repeatable execution through jointly developed, standardised processes, ensuring business success and sustainable growth for both Parties;
(b)    MMHE's scopes are fabrication, integration and onshore testing and pre-commissioning;
(c)    MSBU's scopes are proprietary design, equipment, engineering, procurement and performance warranty; and
(d)    the Framework Agreement is for a period of two (2) years with an option for extensions.
 

3. RISK FACTORS

The risk factors involved in the Framework Agreement are expected to be minimal. The Board and Management will exercise due care in considering the associated risks and benefits prior to entering into any contract within the scope of the collaboration.

4. FINANCIAL EFFECTS

The Framework Agreement 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 Framework Agreement.

6.  DIRECTORS' STATEMENT

The Board of Directors, upon considering all the relevant aspects of the Framework Agreement, is of the opinion that entering the Framework Agreement is in the best interest of the Company.

This announcement is dated 28 April 2026.