The government has approved an additional RM200 million to complete two delayed offshore patrol vessels (OPVs) for the Malaysian Maritime Enforcement Agency (MMEA).
Home Minister Datuk Seri Saifuddin Nasution Ismail.
In a written parliamentary reply on Monday, Home Minister Datuk Seri Saifuddin Nasution Ismail said the extra funding has been approved by the Ministry of Economy. He noted that RM120 million remains from the original allocation of RM740 million approved in 2017 under the 11th Malaysia Plan to build three OPVs.
With the new allocation, the total cost of constructing the three vessels has risen to RM940 million.
The original contract to design, supply and commission the three OPVs was awarded to THHE Destini Sdn Bhd, with completion scheduled within 42 months by August 2020. THHE Destini was initially a joint venture between Destini Bhd (51%) and TH Heavy Engineering Bhd (49%). In late 2021, TH Heavy acquired Destini’s stake for RM121.13 million, making it a wholly owned subsidiary.
In January 2023, the Ministry of Finance took over the project after identifying multiple issues, including the need for a RM152.6 million government loan to complete the first vessel.
Saifuddin confirmed that THHE Destini’s contract was terminated on Dec 31, 2024, with the decision announced in February 2025. The company was also fined more than RM12 million in liquidated damages for delays involving OPV 2 and OPV 3.
So far, the MMEA has received only the first vessel, KM Tun Fatimah.
In May last year, Shin Yang Group Bhd’s subsidiary, Shin Yang Shipyard, received a letter of intent from the Ministry of Home Affairs to complete the remaining two OPVs. In October 2025, Saifuddin said the government had approved a new contractor and was preparing to issue a letter of acceptance to proceed with the remaining works.
