KUALA LUMPUR (July 10): Fajarbaru Builder Group Bhd’s unit has won a RM7.36 million contract from the Australian Department of Defence in the planning phase of military facilities redevelopment at the Royal Malaysian Air Force (RMAF) Base in Butterworth, Penang.

The redevelopment is meant for facilities both leased by the Australian Department of Defence, as well as those belonging to the Malaysian government, according to Fajarbaru’s stock exchange filing on Monday (July 10).

The scope of the contract includes operational and recreational upgrades to airfield pavements, ground lighting infrastructure, drainage, rugby pitch, futsal court and associated infrastructure.

Fajarbaru said the contract, commencing from July 10 to Nov 13 this year, was awarded to an unincorporated joint venture between its wholly owned unit Fajarbaru Builder Sdn Bhd, and Avionics Pty Ltd — wholly-owned by Avionics Holdings Pty Ltd, which in turn is 60%-owned by Nick Brumley Family Trust, while S&R Webb Family Trust owns the remaining 40% stake.

Avionics’ portion of the contract amounted to AU$1.45 million.

In a statement on Monday, Fajarbaru group CEO Datuk Seri Eric Kuan Khian Leng said the contract is deemed a “significant milestone” for the group in demonstrating its expertise and credibility in the construction industry.

“It reaffirms our position as a trusted partner in critical infrastructure projects, and opens doors for future opportunities in the defence sector.

“We are fully committed to delivering exceptional results, showcasing our dedication to excellence and our ability to meet the strict requirements of the Australian Department of Defence,” he said.

The Australian Department of Defence maintains its operations at the RMAF Butterworth Base under the Five Power Defence Arrangements (FPDA) established in 1971 between Malaysia, Singapore, Australia, New Zealand and the UK.

The operational arm of FPDA is known as Headquaters Integrated Air Defence System (HQIADS). 

The HQIADS, headed by a commander, is situated at the RMAF Butterworth Base as well.

Shares of Fajarbaru closed half sen or 1.8% higher at 28 sen on Monday (July 10), giving it a market capitalisation of RM208.51 million.