South Korean food and confectionery conglomerate SPC Group is moving forward with advancing business in the Southeast Asian market.
Until now, the conglomerate seemingly focused primarily on expanding its territory abroad, but it now seems to be proceeding with the intention to grow in size by diversifying its profit structure through businesses in overseas markets.
According to the industry on April 5, SPC Group is planning to build global production facilities in Malaysia. In addition to launching its popular bakery chain Paris Baguette in Malaysia, the conglomerate plans to pursue various businesses in the region such as supplying raw materials for SPC GFS Co Ltd, SPC Group's subsidiary specializing in food distribution, and launch Samlip General Food Co Ltd's local business.
SPC Group's plans appear to involve utilizing Malaysia as a production hub in Southeast Asia and carry out a variety of businesses like establishing business in local markets of the area. Malaysia is commonly considered as a hub for entering the halal food market, which sells food products that Muslims can consume and use. Therefore, in order to successfully settle in the Southeast Asian market, being successful in targeting the Malaysian market is a must.
Until now, SPC Group has been using Singapore as its advanced base to enter Southeast Asian markets such as Vietnam and Cambodia and has been actively doing business in the regions. To take a step further, however, the South Korean food and confectionery maker has chosen Malaysia to further grow its presence in Southeast Asia.
To achieve this, SPC Group also met with Malaysia's Senior Minister and Minister of International Trade and Industry YB Dato' Seri Mohamed Azmin Ali who was visiting South Korea last week, in Seoul.
At the time, SPC Group's president Hwang Jae-bok reportedly explained the current situation of SPC Group's businesses abroad and discussed ways to cooperate with Malaysia and make investments into the country.
During the meeting, SPC Group informed of its plans to build global production facilities in Malaysia and that it is looking for ways to pursue various business opportunities there such as sourcing raw materials for SPC GFS and bringing Samlip General Food's business into the local market, in addition to launching SPC Group's Paris Baguette business.
"We are looking forward to the active investment by SPC Group into also Malaysia as it enters the global market," said Azmin Ali in response. "The Malaysian government will also not spare any support."
Meanwhile, a source of SPC Group said in regard to the conglomerate's entry into Malaysia: "We are actively looking into launching business locally in Malaysia as it is a hub for entering the halal market and is a market with high potential."
"We will work to avidly expand our business in Southeast Asia, the third center of global business for SPC Group after the U.S. and China." (/Global Economic)
( With inputs from ANI )
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