KUALA LUMPUR (July 20): Destini Bhd has secured a two-year contract extension to supply non-proprietary aircraft spare parts for the Royal Malaysian Air Force (RMAF) worth RM222.25 million.

In a bourse filing, the engineering solutions provider said the extension was granted by the Ministry of Defence (Mindef) via a letter of award on July 18 to its wholly owned Destini Prima Sdn Bhd (DPSB) for July 1, 2023 to June 30, 2025.

With the extension, the contract ceiling has been raised to RM403.75 million. The original contract, with a ceiling of RM121 million, was first awarded in July 2020, allowing DPSB and 29 other local companies identified by Mindef to participate in parcels of bidding should RMAF require any non-proprietary aircraft parts. The ceiling was subsequently raised to RM181.5 million in January this year. That agreement expired on June 30, 2023.

“DPSB is required to provide a performance bond when receiving orders from the government. The performance bond shall amount to 2.5% for orders more than RM200,000 and 5% for orders more than RM500,000," it said.

Shares of Destini finished unchanged at eight sen on Thursday (July 20), giving the group a market capitalisation of RM133.08 million.