KUALA LUMPUR - Two tankers that collided and caught fire near Singapore earlier this month are afloat and anchored in Malaysian waters, with an investigation into the incident ongoing, Malaysia's marine department said on Tuesday.

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The Singapore-flagged Hafnia Nile and the Sao Tome and Principe-flagged Ceres I collided and caught fire about 55 km (35 miles) northeast of the Singaporean island of Pedra Branca early on July 19.

The Hafnia Nile, a Panamax tanker, was carrying about 300,000 barrels of naphtha destined for Japan, according to ship-tracking data from Kpler and LSEG. Naphtha is a raw material for making petrochemicals.

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"The Hafnia Nile is hazardous as it is still carrying its naphtha cargo," Mohamad Halim Ahmed, Director General of Malaysia's Marine Department, told a press conference, adding the tanker was severely burnt and its superstructure was compromised.

"Our priority is to ensure it remains afloat and can be moved safely."

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Mohamad Halim said his department was in contact with Singaporean authorities and the owner of the Ceres I to move both vessels to a safe location.

Once both vessels were moved out of open waters to a port, the Malaysian government would then decide on the next steps of the investigation, he said.