KOTA KINABALU: Sabah-based major road infrastructure construction player Azam Jaya Berhad has received a Letter of Acceptance (LOA) from the Transport Ministry for a RM120.9mil contract to upgrade Tawau Airport.
Under the LOA, Azam Jaya, through its wholly-owned subsidiary Pembinaan Azam Jaya Sdn Bhd, will undertake the project on a design and build basis. This includes preliminaries, design, and construction of terminal buildings and associated works.
The contract spans three years, commencing on Aug 22, with completion expected by Aug 17, 2028.
According to the company, the upgrading works at Tawau Airport represent a strategic initiative by the government to enhance the airport’s capacity, operational efficiency, and overall service delivery.
Located on the southeast coast of Sabah, Malaysia, Tawau Airport serves as a vital gateway for both domestic and international travellers. As one of only two airports in the state equipped with immigration counters for international arrivals, Tawau Airport plays a crucial role as a key transit hub in the region.
In 2024, the airport ranked the eighth busiest in Malaysia, handling close to two million passenger movements, reflecting its growing significance in the nation’s aviation network.
The company stated that with passenger traffic increasing significantly in recent years, the ongoing upgrades are timely. These improvements are expected to elevate the comfort and experience of travellers while supporting the region’s tourism growth and economic development.
This latest contract will further strengthen Azam Jaya’s unbilled order book, which stood at RM1.42bil as of March 31, 2025, providing healthy earnings and cash flow visibility through to 2028.
Executive Director of Azam Jaya, Datuk Jessica Lo, said as a proud Sabah-grown company, they were honoured to be entrusted with this important project that supports the state’s ongoing infrastructure development.
She noted that 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.
"This contract is a valuable addition to our project portfolio and reinforces the trust placed in our ability to deliver large-scale developments," she said, adding that it also complements their ongoing involvement in the Pan Borneo Highway and further strengthens their 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," Lo added.
In October last year, Transport Minister Anthony Loke announced that the upgrading of Tawau Airport would begin early 2025 at a cost of about RM130mil, with completion expected in three years. Sixteen companies were shortlisted for the project at that time, with the government in the process of selecting a main contractor.
