State Marine Police Commander ACP Mohamad Madun said the drugs weighing 1,042.70 grammes were found inside a backpack belonging to one of the suspects on a boat at 9pm.
"Both suspects aged 30 and 35 will be investigated under Section 39B of the Dangerous Drugs Act 1952," he said.
He revealed that his men also seized 3,580 packs of cigarettes worth RM55,087.60, including unpaid duties, that were believed to be smuggled through Laut Tinagat at 8.30pm on Sunday.
Mohamad said the seizure was made under "Ops Cantas" when police saw several men behaving in a suspicious manner near a van.
He said a group of men immediately fled in the van but left a box containing the contraband item believed from a neighbouring country.
Apart from monitoring the sea, Mohamad said the team also pays visits to fish markets in the State and will take appropriate action against fishmongers found selling fish caught using fish bombs.
Since January to February this year, he said the force recorded 188 arrests for various offences compared to 145 cases for the corresponding period last year.