The 1,100-dwt Sun Birdie (built 1993) was reported missing on Thursday morning after the owner lost contact on Wednesday night.
The ReCAAP reporting centre said its last known position was one nautical mile south of Tanjung Ayam.
The vessel was laden with 700 tonnes of fuel oil and carries 11 crew: eight Myanmarese and three Indonesians.
Late on Thursday night the ship was sighted and recovered by the Malaysian Maritime Enforcement Agency (MMEA) 17.6
