Kuala Lumpur: Shin Yang Group Bhd’s wholly-owned subsidiary, Shin Yang Shipyard Sdn Bhd, has received a Letter of Intent (LOI) from the Ministry of Home Affairs for the completion of works on offshore patrol vessels (OPVs). This development positions Shin Yang Shipyard as the potential contractor for the remaining works on OPV 2 and OPV 3 for the Malaysian Maritime Enforcement Agency (MMEA).

According to BERNAMA News Agency, the LOI signifies the Ministry of Home Affairs’ intention to appoint Shin Yang Shipyard as the contractor. However, the LOI is subject to further discussions and negotiations concerning specific terms of the proposed shipbuilding contract. It is important to note that the LOI does not constitute a legally binding commitment by the Ministry of Home Affairs, and a definitive contract is not guaranteed.

Shin Yang indicated that if the potential shipbuilding contract is awarded, it is expected to contribute positively to the group’s earnings and net assets during the project’s duration. However, the exact financial impact will only be determined upon the finalisation and execution of the definitive contract.