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Starburst bags S$40.9m contract for firearms training facility in SE Asia
CATALIST-LISTED Starburst Holdings said on Monday that its subsidiary, Starburst Engineering, has clinched a S$40.9 million contract to build a firearms training facility in South-east Asia.
This is the group's largest contract win to date. Starburst Engineering will design, supply, deliver and install range specialist and associated works for the new facility, scheduled to be completed by February 2022, said the group in a statement.
The contract will be carried out over two years, and is expected to have a positive impact on net tangible assets and earnings per share of the group for the financial year ending Dec 31, 2020, said Starburst.
Edward Lim, executive chairman of Starburst, said: "This contract marks an exciting start for us in 2020, and serves to further validate our capabilities and reputation as a top-tier provider of in-house integrated solutions in the regional defence sector."
Demand for military equipment and facilities is on the rise, as governments across the globe double down on military modernisation amid increasing global security concerns.
In 2019, global defence spending rose by approximately 4 per cent from 2018 – the highest year-on-year growth in years, according to data from the International Institute for Strategic Studies.
While Starburst "remains sanguine" on opportunities within the region, the group is "cautiously optimistic of future projects" amid the ongoing Covid-19 pandemic, said Jonathan Yap, managing director of Starburst.
Starburst shares closed trading at S$0.385 on Monday, down one Singapore cent or 2.53 per cent.