Source: Google Street View

Fajarbaru Builder Group Bhd has announced an expansion of its joint venture with Avionics Pty Ltd (APL) in the redevelopment of military facilities at the Royal Malaysian Air Force (RMAF) Base Butterworth in Penang. The Australian Department of Defence has awarded an additional RM39 million contract for this project, as part of an amendment to the existing head contract and minor works contract.

Fajarbaru’s portion of the new contract value is RM15.71 million. Initially, on July 10, 2023, the joint venture partners Fajarbaru Builder Sdn Bhd (FBSB) and APL received the Head Contract (International) Two Phase from the Australian Department of Defence for the redevelopment project. Fajarbaru’s initial portion of the contract for the planning phase was valued at RM7.36 million, which was later revised to RM12.30 million on January 11, 2024, to accommodate additional works.

Further, on March 15, 2024, Fajarbaru secured a minor works contract (International) from the Australian Department of Defence, with its portion worth RM11.04 million. Following the latest announcement, the total value of Fajarbaru’s contracts for this project has increased to RM39.05 million as of May 28, 2024.

The amended contract also extends the planning phase duration from April 30, 2024, to September 9, 2024. The completion date for the minor works contract has been pushed from November 21, 2024, to March 28, 2025.

“We are pleased to announce that Fajarbaru has secured an additional contract sum as part of our project to redevelop facilities at RMAF Base Butterworth in Penang. This development is a testament to the confidence the Australian Department of Defence has placed in our ability to deliver exceptional results and unlocks future opportunities in the defence sector,” said Fajarbaru’s group executive chairman Tan Sri Chan Kong Choy.

Fajarbaru’s share price remained unchanged at 45 sen per share, giving the company a market capitalisation of RM335.1 million. This expansion underscores Fajarbaru’s capabilities in critical infrastructure and construction projects, bolstering its position in the defence sector.