Fajarbaru Builder Group Bhd (“Fajarbaru” or “Group”) announced that its wholly-owned subsidiary, Fajarbaru Builder Sdn Bhd (“FBSB”) along with Avionics Pty Ltd (“APL”), has secured an additional contract sum related to the Head Contract (International) Two Phase and Minor Works Contract (International) from the Australian Department of Defence, with the Group's portion of the additional contract value worth RM15.71 million. This development, which comes following an amendment to the contract, expands the scope of Fajarbaru’s involvement in the design and construct infrastructure project to redevelop military facilities at the Royal Malaysian Air Force (RMAF) Base Butterworth, Penang, Malaysia.
To recap, on 10 July 2023, FBSB and APL were awarded a Head Contract (International) Two Phase from the Australian Department of Defence, to redevelop military facilities at Royal Malaysian Air Force (RMAF) Base Butterworth. For the Planning Phase of the project, Fajarbaru’s portion of the contract initially had a value of RM7.36 million. On 11 January 2024, Fajarbaru announced that the total value of this portion had been revised upwards to RM12.30 million, to account for additional works. On 15 March 2024, Fajarbaru announced it had secured a Minor Works Contract (International) from the Australian Department of Defence, with the Group’s portion of the contract worth RM11.04 million.
Following today’s announcement, the total value of Fajarbaru’s work secured for the project is now RM39.05 million as of 28 May 2024.
Fajarbaru’s Group Executive Chairman Tan Sri Dato’ Sri Chan Kong Choy said:
“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.
We will continue to pursue additional opportunities to expand our involvement in this project, leveraging our proven strengths in critical infrastructure and construction projects.
We wish to thank the Australian Department of Defence for their trust and look forward to continuing our successful partnership.”
As part of the amended contract, the duration of the Planning Phase of the project has been extended to 9 September 2024, from 30 April 2024 initially. The Minor Works Contract (International) is now expected to be completed on 28 March 2025. Previously, the Minor Works contract was scheduled to be completed on 21 November 2024.
Further details of the contract and project are included in Fajarbaru’s stock exchange filings on 28 May 2024, 15 March 2024, 11 January 2024, and 10 July 2023.
