Last updated on August 23, 2025
SABAH: Leading Sabah-based road and infrastructure specialist Azam Jaya Berhad (“Azam Jaya” / “大城集团”), through its wholly-owned subsidiary Pembinaan Azam Jaya Sdn Bhd, has secured a RM120.9 million contract from the Ministry of Transport Malaysia to undertake upgrading works at Tawau Airport, Sabah.
The company today received the Letter of Acceptance (“LOA”) for the project, which will be carried out on a design-and-build basis. Scope of works includes preliminaries, design, and construction of terminal buildings along with associated facilities. The project will span three years, commencing 22 August 2025 and scheduled for completion by 17 August 2028.
This upgrade forms part of the government’s efforts to expand Tawau Airport’s capacity, improve operational efficiency, and enhance overall service standards. Strategically located on Sabah’s southeast coast, Tawau Airport is a critical gateway for domestic and international travellers. It is one of only two airports in the state equipped with immigration counters for international arrivals.
In 2024, Tawau Airport ranked as Malaysia’s eighth busiest, handling nearly 2.0 million passengers, reflecting its growing importance in the national aviation network. The planned enhancements are expected to boost passenger comfort, support tourism growth, and spur economic development in the region.
The new contract will strengthen Azam Jaya’s unbilled order book, which stood at RM1.42 billion as of 31 March 2025, ensuring strong earnings and cash flow visibility through 2028. The company’s current portfolio also includes several work packages under the Pan Borneo Highway project, which are expected to increasingly contribute to performance in the coming quarters.
Executive Director Datuk Jessica Lo (拿督罗文圻) commented, “As a homegrown Sabah company, we are honoured to be entrusted with this significant project that advances the state’s infrastructure agenda. The Tawau Airport upgrade will enhance regional connectivity and meet rising demand for international travel to Sabah’s east coast.”
She added, “This award not only expands our project portfolio but also reinforces market confidence in our capability to deliver large-scale developments. Alongside our involvement in the Pan Borneo Highway, it further strengthens our presence across Sabah. With continued federal funding priority for Sabah under Budget 2025, we foresee more opportunities to contribute to the state’s progress. We are also exploring expansion into Sarawak and Kalimantan as part of our long-term growth strategy. The RM61.5 million raised from our IPO will be channelled towards enhancing construction capacity and scaling up operations, enabling us to take on more complex projects and grow our order book sustainably.”
Azam Jaya was listed on the Main Market of Bursa Malaysia Securities on 11 November 2024 under the stock name AZAMJAYA (stock code: 5329).
