Shin Yang in line to build two patrol vessels for maritime agency
SHIN Yang Group Bhd said that its subsidiary, Shin Yang Shipyard, has received a letter of intent (LOI) from the Ministry of Home Affairs to construct two offshore patrol vessels (OPV 2 and OPV 3) for the Malaysian Maritime Enforcement Agency (MMEA).
The group said the LOI, received on May 20, expresses the government's intention to appoint the shipyard for the project, although a binding contract will only be signed after final negotiations on pricing and payment terms.
While the LOI is not legally binding, the group noted that a successful award could enhance its earnings and asset base.
Shin Yang also acknowledged potential risks, including project delays, regulatory changes, execution challenges, and manpower and material availability.
Shares in Shin Yang Group rose 2.5 sen or 3.38% to close at 76.5 sen today, giving it a market capitalisation of RM830.5 million. — TMR
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