KUALA LUMPUR: Fajarbaru Builder Group Bhd’s (FBG) wholly-owned subsidiary, Fajarbaru Builder Sdn Bhd (FBSB), along with Avionics Pty Ltd (APL), has secured a delivery phase (early works) contract from the Australian Department of Defence, with FBG’s portion of the contract worth RM11.04 million.
This contract further expands FGB’s involvement in the design and construction of infrastructure projects to redevelop military facilities at the Royal Malaysian Air Force (RMAF) base in Butterworth, Penang.
With this announcement, the total value of FGB’s work secured for the project is now RM23.34 million as of March 15, 2024.
The early works, which come under the project’s delivery phase, will commence on March 18, 2024, and are scheduled to be completed on November 21, 2024.
FGB group executive chairman Tan Sri Chan Kong Choy said securing this award is another reaffirmation of the company’s position as a trusted partner in critical infrastructure projects.
“We believe we are well-positioned to deliver exceptional results, showcasing our commitment to excellence and ability to meet the strict requirements of the Australian Department of Defence.
“Over the long run, we believe this project will significantly increase our earnings.
“We continue seeking opportunities to expand our involvement in this project by bidding for more packages, focusing on value-added and negotiated business,” he said in a statement.
To recap, on July 10, 2023, FBSB and APL bagged a head contract (International) in two phases from the Australian Department of Defence to redevelop the Australian leased facilities and Malaysian facilities at Royal Malaysian Air Force (RMAF) Base Butterworth.
For the project’s planning phase, FGB’s portion of the contract initially had a value of RM7.36 million.
On January 11, 2024, FGB announced that the total value of this portion had been revised upwards to RM12.30 million to account for additional work.
Further details of the contract and project are included in FGB’s stock exchange filings on March 15, 2024, January 11, 2024, and July 10, 2023.
With a strategy to drive sustainable revenue flow through a diverse range of businesses, FGB continues to demonstrate sustained improvements on the financial and operational front.
In the second quarter (Q2) ended December 31, 2023 (FY24), FGB reported a net profit of RM20.88 million, a surge of 606 per cent compared to a net profit of RM2.96 million reported in the first quarter (Q1) FY24.
Revenue amounted to RM126.79 million, an impressive 74 per cent increase compared to the first quarter of the same financial year.
The company’s property development segment mainly drove the improved performance for the second quarter.
As of March 15, 2024, FGB’s construction division currently has an orderbook of RM927 million with a wide range of projects such as high-rise residential buildings, affordable apartments, retail complexes, service apartments, and the redevelopment of military facilities.
FGB is currently tendering for construction projects with a combined value of RM4.7 billion across the private and government sectors.
Major recent job wins include a contract worth RM120.82 million for construction works for the Johore Golf & Country Club, which marks FGB’s inaugural venture into Johor.
The company continues extending its project portfolio across diverse regions, from Penang to the East Coast, Klang Valley, and southern states in Peninsula Malaysia.
In FY24, FGB will continue building its property development business’s brand presence and broadening its portfolio.
In Malaysia, FGB is progressing on its latest development project, Desa Green, located in Kuala Krai, Kelantan.
The company is also engaged in a joint venture for the Centralised Labour Quarters (CLQ) project in Senawang, Negeri Sembilan.
In Australia, FGB has initiated a new project in Fitzroy, Melbourne, slated for launch this year.
Another Australian project, The Wilds, aims to be the first carbon-neutral detached housing project in inner Melbourne.
All residences will be powered exclusively by electricity and equipped with solar panel arrays.
