Reference is made to the Company’s announcements dated 21 April 2025, 21 May 2025, 6 & 22 August 2025, 12 September 2025 and 2 October 2025.

The Board of Directors wishes to announce an update in relation to the Notice of Arbitration served by Haumea Offshore Sdn Bhd (“HAUMEA”) against Malaysia Marine and Heavy Engineering Sdn Bhd (“MMHE”), a wholly-owned and major subsidiary of MHB.

BACKGROUND

MMHE had on 15 April 2025 received a Notice of Arbitration dated 11 April 2025 from the solicitors for HAUMEA in relation to claims arising from Subcontract No. 3900007170 titled “Hook-up and Commissioning Works and Marine Vessels for Bokor Phase 3 Redevelopment Project (Package A)” (“the Subcontract”).

Under the Subcontract, HAUMEA was appointed by MMHE as its subcontractor to provide Hook-up and Commissioning works, including marine vessels, for the Bokor Phase 3 Redevelopment Project (“the Works”).

In its Notice of Arbitration, HAUMEA claims that there were disputes between it and MMHE under the Subcontract in relation to its performance of the Works (“the Dispute”).

HAUMEA has included an indicative amount of its alleged loss, approximately RM57.3 million, as part of the Notice of Arbitration, including interest, costs and/or other reliefs as deemed fit by the Arbitration Tribunal.

On 13 May 2025, MMHE had filed an application for an injunction against the Notice of Arbitration issued by HAUMEA in connection with the ongoing Dispute under the Subcontract.

On 20 May 2025, the High Court of Johor Bahru granted an ex-parte injunction in favour of MMHE, restraining HAUMEA from registering the said Notice of Arbitration, commencing or proceeding with arbitration in connection with the said Notice of Arbitration.

The ex-parte injunction serves to preserve the status quo and protect MMHE’s position pending the determination by the High Court of the validity of the Notice of Arbitration. The decision reflects the High Court's recognition of the potential prejudice to MMHE if the ex-parte injunction was not granted.

On 5 August 2025, the High Court at Johor Bahru allowed HAUMEA’s application to set aside MMHE’s ex-parte injunction and dismissed MMHE’s injunction with the cost of RM10,000.00 awarded to HAUMEA. The High Court fixed the hearing of MMHE’s Originating Summons (“OS”) on 11 September 2025 to seek a declaration that HAUMEA’s Notice of Arbitration is invalid.

On 21 August 2025, MMHE had filed the Notice of Appeal against the High Court’s decision delivered on 5 August 2025.

On 11 September 2025, MMHE’s solicitors were informed by the High Court at Johor Bahru that the hearing of the OS has been postponed to 2 October 2025. On 2 October 2025, the High Court proceeded with the hearing of the OS and subsequently fixed 27 October 2025 to deliver its decision. 

UPDATE

On 27 October 2025, the High Court dismissed the OS with cost of RM10,000-00 subject to allocatur fees. MMHE has been advised by its solicitors to appeal against the High Court’s said decision to safeguard its interest.

EFFECT OF THE HIGH COURT’S DECISION

Following the High Court’s decision on the OS, HAUMEA may proceed with the arbitral proceedings under the Notice of Arbitration. Nevertheless, in the event MMHE’s appeal against the High Court’s decision is allowed by the Court of Appeal, the arbitral proceedings, if any, commenced under the Notice of Arbitration, would be rendered null and void.

OPERATIONAL AND FINANCIAL IMPACT ON THE MHB GROUP

There is no financial or operational impact on the MHB Group at this juncture arising from the Notice of Arbitration served on MMHE and the decision of the High Court. MMHE will continue to pursue all available legal avenues, including disputing the validity of the Notice of Arbitration, preparing the defence and counterclaim in the arbitration, and any other proceedings deemed necessary to protect its interests.

DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTEREST

None of the directors, major shareholders of MHB, or persons connected with them has any interest, direct or indirect, in the matter.

FURTHER ANNOUNCEMENTS

The Company will make the necessary announcements as and when there are further material updates.

This announcement is dated 28 October 2025.