From left: Transport Ministry procurement and finance division under secretary Guna Arulalan David, Transport Ministry secretary-general Datuk Seri Jana Santhiran Muniayan, Azam Jaya Bhd chairman cum group managing director Datuk Jonathan Lo Chaw Loong, Azam Jaya executive director Datuk Lo Vun Che @ Jessica and Transport Ministry development division deputy under secretary Rahidah Mohd.
KUALA LUMPUR: Azam Jaya Bhd via its wholly-owned unit Pembinaan Azam Jaya Sdn Bhd, has secured a RM120.9mil contract from the Transport Ministry for upgrading works at Tawau Airport, Sabah.
In a statement, the Sabah-based major road infrastructure player said that under the letter of acceptance, it will undertake the Tawau Airport upgrade on a design-and-build basis. The scope includes preliminaries, design, construction of terminal buildings and associated works.
The three-year contract begins on Aug 22, 2025 and is expected to be completed by Aug 17, 2028.
“As a proud Sabah-grown company, we are honoured to be entrusted with this important project that supports the State’s ongoing infrastructure development.
“The upgrading of Tawau Airport will not only enhance regional connectivity but also help accommodate the increasing demand for international travel to Sabah’s east coast,” executive director Datuk Jessica Lo said.
She said the contract is a valuable addition to the group’s project portfolio and reinforces the trust placed in its ability to deliver large-scale developments. It also complements Azam Jaya’s ongoing involvement in the Pan Borneo Highway and further strengthens its footprint across Sabah.
“With funding allocation for Sabah remaining a priority under Budget 2025, we believe there will be more opportunities to support the State’s development. At the same time, we are actively exploring expansion into Sarawak and the Kalimantan region as part of our long-term strategy to broaden our geographical reach.
“As we scale up, our focus remains on building a strong and sustainable project pipeline. The RM61.5 million raised from our IPO will be used to strengthen our construction capabilities and scale up our operations, allowing us to take on larger, more complex projects and support the long-term growth of our order book,” Lo said.
The latest contract will further strengthen Azam Jaya’s unbilled order book, which stood at RM1.42bil as of March 31, 2025, providing the group with healthy earnings and cash flow visibility through to 2028.
