Mah Sing to explore new growth opportunities in healthcare segment

Mah Sing Plastics’ Non-Executive Chairman, Hong Hock Seng; Mah Sing’s Founder & Group Managing Director, Tan Sri Dato’ Sri Leong Hoy Kum; MahSing Plastics’ Executive Director, Lee Foo Keong

Property developer, Mah Sing Group Berhad (Mah Sing) will be exploring new growth opportunities in healthcare through its plastics manufacturing division via its wholly owned subsidiary, Mah Sing Plastics Industries Sdn. Bhd. (MSPI).

Mah Sing’s founder and group managing director, Leong Hoy Kum said,  “At the moment, we are still in the preliminary stages of planning. However, we are excited to pursue new growth areas in healthcare. We are keen to pursue opportunities in the production of healthcare product. We intend to leverage on MSPI’s proven track record and expertise as a plastics manufacturer in Malaysia on this potential business venture. With our plastics division’s ready resources and expertise, we are optimistic for a fruitful endeavour.”

The plastics segment has continuously contributed positively to the Group’s performance with revenue of approximately RM76.1 million and operating profit of approximately RM3.34 million recorded for the quarter ended March 31.  In 2019, the plastics division contributed revenue of RM327.1 million or 18.3 percent to the Group revenue.

There is a separate management team for the plastics division, which has been running the division independently for many years.  The plastic division currently does not require capex injection from the parent company.

Mah Sing’s plastics division comprises operations in Malaysia and Indonesia and is a wholly owned subsidiary of the Group, whilst the Indonesian operation is a 65 percent owned subsidiary with a clientele list ranging from Panasonic, Daihatsu, Toyota, Mitsubishi, Nissan, Mercedes Benz, and Suzuki.

Approximately 40 percent of the Malaysian plastics’ operational sales and revenue are from export, with the top five export markets being Singapore, Thailand, Indonesia, Vietnam and Philippines. The Malaysian factory focuses on proprietary products especially material handling products.  As for the Indonesian operations, P.T. Mah Sing Indonesia is one of the biggest player in the Original Equipment Manufacturer (OEM) market focusing on large automotive parts in Indonesia.

Currently, the factories in Malaysia and Indonesia have close to 80 units of injection machine ranging from 60 tonnes to 4,000 tonnes clamping force, amongst the largest in ASEAN.

In recent years, MSPI has cultivated methods to process recycled plastics into quality pallets to be more environmentally friendly, whilst reducing the cost to customers. This reflects the company’s commitment to reduce, reuse, and recycle for a sustainable ecosystem.

More than RM16.5 million has been invested in automation of production lines in Malaysia.  There are 35 plastic injection machines at the manufacturing plant in Malaysia, amongst them the 4,000 tonnes plastic injection machines which are the biggest in Malaysia.

“For future expansion of MSPI, we will be increasing our factory capacity for the production of plastics pallet and setting up logistic hubs in Southern and Northern regions. We are now also going into the leasing business of plastics pallet rental, which gives more flexibility to some of our customers for various usage. Driven by the vast opportunities within the e-commerce space, we intend to explore the possibility of developing plastics products for the consumer segment as well.” said Lee Foo Keong, Mah Sing Plastics’ executive Director,

 

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