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Azam Jaya gets RM120 million Tawau airport contract
Published on: Thu, Aug 07, 2025 Text Size: Yang Berbahagia Datuk Jessica Lo, Executive Director of Azam Jaya, stated, 'As a proud Sabah-grown company, we are honoured to be entrusted with this important project that supports the State's ongoing infrastructure development. TAWAU: Sabah-based major road infrastructure construction player, Azam Jaya Berhad via its wholly-owned subsidiary, Pembinaan Azam Jaya Sdn Bhd, has received the Letter of Acceptance (LOA) from the Ministry of Transport Malaysia for a RM120.9 million contract for the upgrading works for Tawau Airport in Sabah. Under the LOA, Azam Jaya will undertake the project on a design and build basis, including preliminaries, design, construction of terminal buildings and associated works. The contract spans over 3 years, commencing from 22 August 2025, with completion expected by 17 August 2028.
Advertisement 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 as the eighth busiest in Malaysia, handling close to 2.0 million passenger movements, which is a clear reflection of its growing significance in the nation's aviation network. 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.
Advertisement The latest contract will further strengthen Azam Jaya's unbilled order book, which stood at RM1.42 billion as of 31 March 2025, providing healthy earnings and cash flow visibility through to 2028. Azam Jaya's ongoing project portfolio also includes few work packages under the Pan Borneo Highway. These projects are expected to make a growing contribution to the Group's performance as they progress in the coming quarters. Yang Berbahagia Datuk Jessica Lo, Executive Director of Azam Jaya, stated, '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.' 'This contract is a valuable addition to our project portfolio and reinforces the trust placed in our ability to deliver large-scale developments. It also complements our ongoing involvement in the Pan Borneo Highway and further strengthens our 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.' To recap, Azam Jaya was listed on the Main Market of Bursa Securities on 11 November 2024 under the stock name AZAMJAYA and stock code of 5329. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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