GEORGE TOWN, July 26 — A Chinese cargo ship named Xin Yi Yi hit a shipwreck and sank off the southern coast of Penang island at about 5.30am today.

Fortunately, the five crew on board were unhurt in the incident and were taken to safety by personnel from the Malaysian Maritime Enforcement Agency (MMEA).

"There were five crew, four are Chinese and one from Hong Kong, onboard and all of them are safe,” an official from the MMEA Commander Hamizan Harun said in a statement.

He said Chinese ship had measured 43.6m and had hit the wreckage of another ship called Kapal Simen off the coastline.

The Chinese ship’s losses are estimated at RM3.5 million.

He said the MMEA will issue a full statement on the incident later today.