Fajarbaru bags RM131.6m delivery phase contract from Australian Department of Defence

FAJARBARU Builder Group Bhd has secured the delivery phase of the Head Contract (International) Two Phase for the Butterworth infrastructure project at the Royal Malaysian Air Force (RMAF) base in Butterworth, Penang, with a contract value of RM131.6 million.

FBG’s wholly-owned subsidiary, FBG Builder Sdn Bhd (formerly Fajarbaru Builder Sdn Bhd), will receive RM75.9 million of the total, while its joint venture partner, Avionics Pty Ltd (APL), is entitled to RM55.7 million.

This latest award builds upon earlier contracts announced in 2023 and early 2024, bringing the total value of the project to RM185 million.

The project involves comprehensive infrastructure upgrades at the RMAF Base, including improvements to airfield pavements, drainage systems, recreational facilities, ground lighting, and other related infrastructure.

As of February 4 2025, FBG’s cumulative contract entitlement for the project has reached RM115 million.

FBG group executive chairman, Tan Sri Datuk Sri Chan Kong Choy, commented on the milestone, stating, “This is a significant step forward in our continued partnership with the Australian Department of Defence. We are pleased to take on an expanded scope that highlights our ability to manage and deliver complex, high-quality projects on time and within budget. This award not only strengthens our position in the construction industry but also supports the development of vital infrastructure in the region.”

The contract timeline has been extended, with Stage 1 – Australian Leased Facilities expected to be completed by December 8, 2025, and Stage 2 – Malaysian Facilities Redevelopment scheduled for completion by September 1, 2026.

The board of directors of Fajarbaru is confident that the contract will bolster the group’s long-term growth prospects and further solidify its reputation as a reliable partner in large-scale infrastructure projects. — TMR