JAKARTA, Apr. 22, 2015 (Antara/BERNAMA-AsiaNet) --
MSM Malaysia Holdings Berhad (MSM), one of the top 50 companies on Bursa Malaysia is Malaysia's largest refined sugar producer and a subsidiary of Felda Global Ventures Holdings Berhad (FGV), is currently eyeing Indonesia as part of its integral growth expansion plan in the next four to five years.
With the country's favourable regulatory system and an attractive market for destination refining, MSM sees its entry into the country's sugar sector as a sound investment and strategic fit to grow its sugar operations internationally.
"We are excited to strategically invest in Indonesia due to its promising market and the fact that it is considered as one of Asia's growth engines, which is a tremendous opportunity to achieve our long-term vision," said Dato' Sheikh Awab Sheikh Abod, President and CEO of MSM Malaysia Holdings Berhad.
He added, "Our investment in Indonesia is one of many, in which it will help us capture the growth opportunity in one of the largest and most richly endowed natural resources countries in the world. Consequently, this will also promote a strong economic growth, with an impetus for job opportunities and possible local sourcing for the local economy."
"We are currently in discussion with few local companies but we are also open to all options including building a new mills for any state-owned government."
MSM's strategic plan is to expand its value chain participation by building a configuration of sugar milling and refining assets in countries with a steady crop yield output. Acquisition and/or collaboration with a local company will see benefit in terms of 50 years of expertise and experience in skilled management.
Indonesia is the largest sugar consumer market in South-east Asia and one of the world's top 10 largest consumers of sugar. It is estimated to consume over 5.5 million tonnes of sugar annually and consumption has been growing over the last three years. Additionally, Indonesia is one of the world’s five largest net importers of sugar and an attractive market for destination refining.
The year 2015 would be a growth year for MSM. As a financially strong company with zero gearing and sound cash balances, MSM is ready to roll out its strategic business plan for global expansion which includes venturing into upstream and downstream businesses. The company is optimistic that they are in the right direction to control over the entire supply chain of the sugar business from upstream to ship charter, warehousing, trading companies and refineries.
"With the commencement of our trading office in Dubai in May this year, MSM will continue to strengthen its competitiveness in domestic and export markets. Aside than Indonesia, we are also in process of identifying three (3) more representative offices in China, India and Thailand, and move us closer towards our goal of becoming Southeast Asia's premium sugar refining and trading company," said Dato' Sheikh Awab.
Currently, MSM owns and operates two sugar refineries in Malaysia, located in Penang and Perlis with a combined total production capacity of 1.25 million tonnes. The company expected to increase its total production through its latest refinery planned to be built in Tanjung Langsat, Johor by mid-2017.
The refinery in Tanjung Langsat is designed with 2 production lines with a capacity of 1 million tonnes each which expected to be increased to 4 million tonnes by 2020. With this, the company hopes to control the entire sugar market in Malaysia and Singapore by 2018.
MSM are very optimistic with the investment as it will continue to strengthen its competitiveness in domestic and export markets, and move it closer towards its goal of becoming the top three sugar player in ASEAN and the top 10 sugar player in the world.
Link to download image: http://www.msmsugar.com/media/gallery/images/dato%E2%80%99-sheikh-awab-sheikh-abod
About MSM Malaysia Holdings Berhad (MSM)
MSM Malaysia Holdings Berhad (MSM), incorporated on 10 March 2011, is Malaysia's leading sugar producer. It was listed on the Main Market of Bursa Malaysia Securities Berhad on 28 June 2011 and is one of the top 60 companies on Bursa Malaysia with a market capitalization of RM3.4 billion (as at 2014).
Principally, MSM operates the sugar business of Felda Global Ventures Holdings Berhad. It produces, markets and sells refined sugar products. The company conducts its business principally through two operating subsidiaries, MSM Prai Berhad (formerly known as Malayan Sugar Manufacturing Company Bhd) and MSM Perlis Sdn Bhd (formerly known as Kilang Gula Felda Perlis Sdn Bhd) which were established in 1959 and 1971 respectively. In addition, MSM also operates its own logistics company – MSM Logistics Sdn. Bhd. Through its subsidiaries, MSM has an impressive combined annual production capacity of 1.1 million tonnes of refined sugar. In 2014, MSM produced 986,114 tonnes of refined sugar products, of which 20% are catered for the export market. Currently, MSM accounts for approximately 64% of the domestic market share.
The company offers a variety of products ranging from white refined sugar of various grain sizes to soft brown sugar. These are marketed and sold in a variety of packaging options under two brands "Gula Prai" and "Gula Perlis". The company also sells molasses, a by-product of the refining process, to distilleries and producers of ethanol, animal feed and yeast, among other products. MSM sells to a wide range of customers in Malaysia and in other countries directly and indirectly through traders, wholesalers and distributors. Its customers include major companies in the beverage and confectionery industries, hotels, restaurants, food outlets and household consumers.
For more information, please visit to www.msmsugar.com
FOR MORE INFORMATION, PLEASE CONTACT:
NAME : Siti Noorbaya Mohd Yunus
TEL : +603 2181 5018 ext. 158
MOBILE : +6016 677 6118
EMAIL : noorbaya.my@msmholdings.com.my
SOURCE: MSM Malaysia Holdings Berhad (MSM)
Reporter: PR Wire
Editor: PR Wire
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