Diving straight into the heart of groundbreaking developments, Fajarbaru Builder Group Bhd has recently clinched a pivotal contract, setting the stage for an ambitious redevelopment project at the Royal Malaysian Air Force (RMAF) base in Butterworth, Penang. This remarkable venture, valued at RM11.04 million, not only marks a significant milestone for Fajarbaru but also highlights the company’s robust capabilities in handling major construction and redevelopment projects.
In an official announcement to Bursa Malaysia, the esteemed construction and property development conglomerate shared the exhilarating news of the contract awarded by the Australian Department of Defence. This contract, a testament to Fajarbaru’s exceptional expertise, has been entrusted to its wholly owned subsidiary, Fajarbaru Builder Sdn Bhd (FBSB), in collaboration with Avionics Pty Ltd, under the umbrella of Avionics Holdings Pty Ltd.
With the contract’s total worth reaching an impressive RM13.81 million, FBSB’s share amounts to RM11.04 million, while Avionics secures the remaining RM2.77 million. This partnership not only signifies a monumental leap for Fajarbaru but also fortifies its position in the industry, showcasing its capacity to undertake and excel in complex projects.
Tracing back to July 2023, this venture’s roots extend deep, with FBSB and Avionics initially engaged by the Australian Department of Defence during the planning phase. The contract’s value has since been revised upwards, reflecting the project’s growing scope and Fajarbaru’s escalating involvement. Presently, FBSB’s contribution to the project totals an astounding RM23.34 million, underlining the project’s scale and the trust vested in Fajarbaru’s capabilities.
This new contract promises to broaden FBSB’s horizon in designing and constructing pivotal infrastructure projects, encompassing both Australian-leased and Malaysian facilities at the strategic military base. Set to commence on March 18, with a completion target by November 21 of the same year, this project is poised to make a significant impact on Fajarbaru’s earnings for the financial years 2024 and 2025.
Fajarbaru’s executive chairman, Tan Sri Chan Kong Choy, expressed optimism regarding the project’s long-term benefits to the group’s earnings. With a forward-looking approach, the group is keen on exploring further opportunities within this expansive project, aiming to secure additional packages that promise value and innovation.
Currently boasting an order book of RM927 million, Fajarbaru’s construction division is thriving, undertaking a diverse array of projects that span from high-rise residential buildings to the strategic redevelopment of military facilities. With ongoing tenders for projects valued at RM4.7 billion across both private and government sectors, Fajarbaru is on a trajectory of unprecedented growth and expansion.
As the group’s shares held steady at 32.5 sen, reflecting a market capitalization of RM242.02 million, Fajarbaru Builder Group stands at the brink of an exciting journey, heralding a new era of construction excellence and strategic development endeavors in Malaysia and beyond.
