1.    INTRODUCTION

Malaysia Marine and Heavy Engineering Holdings Berhad (“MHB” or “the Company”) wishes to announce that MHB’s wholly-owned and a major subsidiary, Malaysia Marine and Heavy Engineering Sdn Bhd (“MMHE”) had on 15 April 2025 received a Notice of Arbitration dated 11 April 2025 from the solicitors for Haumea Offshore Sdn Bhd (previously known as Trans Fame Offshore Sdn Bhd) (“TFO”) 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)” (hereinafter referred to as “the Subcontract”).

2.    THE DISPUTE

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

In its Notice of Arbitration, TFO claims that there were disputes between it and MMHE under the Subcontract in relation to its performance of the Works.

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

3.    EFFECT OF THE ARBITRATION

The financial impact of the arbitration initiated by TFO on MHB's Group of Companies depends on the outcome. The expected loss, if any, arising from this claim is anticipated to be approximately RM57.3 million. However, no operational impact is expected to arise from the claim.

MMHE will vigorously defend TFO's claims and is presently exploring its options of pursuing a counterclaim against TFO. Apart from the arbitration proceedings, MMHE reserves its right to pursue any other legal actions as may be permitted under Malaysian laws.

The Board of Directors of MHB undertakes to continuously update the stakeholders of any material impact on MHB’s Group business and financial results for the financial year ending 2025.

4.    DIRECTORS' AND SUBSTANTIAL SHAREHOLDERS' INTEREST

None of the directors or major shareholders of the Company or persons connected to them has any interest, direct or indirect, in the arbitration proceedings.

This announcement is dated 21 April 2025.