Linaco: Carving A New Milestone

Since 1992, Linaco Manufacturing (M) Sdn Bhd has been known for its specialisation in coconut manufacturing. With a 24-acre integrated processing plant located in Batu Pahat and a headquarters based in Shah Alam, its coconut manufacturing factory is recognised as the biggest coconut manufacturer in the country.

Linaco’s products goes beyond just coconut-based products. Its other subsidiaries such as Linaco Speciality Industries Sdn Bhd and Linaco Food Indusries Sdn Bhd produces sauces and pre-mixed herbs and spice products respectively.

Establishing A Presence In The Halal Segment

Being the country’s biggest coconut manufacturing factory, the company that was founded by Richard Ling reached another milestone it established a well-known presence within the Halal industry. Linaco is currently exporting to over 40 countries and counting.

In successfully penetrating the halal segment, Joe Ling, the executive director of Linaco Group says it is important to develop a closer working relationship with MATRADE and the Halal Development Corporation (HDC).

HDC had recently launched its Digital Augmented Reality Showcase Of Halal Malaysia (DASH). It is a  platform which enables people to receive branding and awareness via their wide pool of network. Besides government bodies, Joe says local hypermarkets such as Mydin serve as a great platform to further elevate their halal products presence throughout the country.

“Malaysia’s Halal Jakim is known to be the most stringent certification and is globally recognized. The Halal certification sets a high standard in food safety, hygiene, and reliability – giving us the edge as the preferred choice as compared to other similar manufacturers from neighbouring countries.

The other advantage is free branding. Some of our private label customers are required to display our full manufacturing details because of our Halal Jakim logo printed on the packaging,” he tells Business Today.

Expanding With The Help Of MIHAS

Since its inception in 2004, the Malaysia International Halal Showcase (MIHAS) has been recognised as an effective platform in the Halal trade locally and globally. MIHAS eBizMatch, supported by MATRADE’s International Sourcing Programme (INSP) are seen as effective tools in engaging potential global buyers.

“MATRADE’s 46 worldwide offices strategically stationed at various countries play an important role in assisting our global expansion. Recommendations and promotions including market intelligence are provided to ensure our products are successfully exported to the respective countries,” Joe shares.

MATRADE has expressed their commitment to proote Malaysian enterprises on the world stage and through MIHAS 2021, the platform has been highlighted as the best for Halal industry players to seize opportunities in order to penetrate new markets and expand business networks.

“We aspire to constantly raise the benchmark and do better every year. We are confident that the 18th edition of MIHAS event next year will be on a bigger scale with commitment for continued synergy between physical and virtual format to reach out to more Halal industry players,” MITI stated.

Overcoming Challenges

“Linaco, as a group, experienced a high in 2020 due to high demands for our products which was categorised under the essential food category. But despite the high demand, we still faced challenges,” says Joe. 

The company encountered backlogs and disruptions where its supply chain such as raw materials, packaging materials, cartons amongst others were affected due to unclear guidelines during the first Movement Control Order (MCO). 

Additionally, the company was affected by the high-cost freight charges, and this led to some orders being reduced. However, Joe and his team ensured that necessary and immediate measures were taken and implemented to mitigate and cushion challenges.

“If we say we are not worried of the pandemic, that’s a lie. We were concerned about our people’s welfare, our production and our deliverables to our customers. But despite it all, we managed to pivot and overcome these challenges,” he says.

Joe highlights that the one of the priorities undertaken to pivot was staff empowerment by ensuring staff that their welfares were taken care of during these challenges and adjustments. Apart from that, the leadership team at Linaco had also undertook different approaches to fit the new norm and to transition towards digitalising their operations and invested in automation.

The Differentiation Factor

“Besides the usual, well-established, top-quality products and top-notch customer service, Linaco’s corporate best practices are embedded and demonstrated through its people and through the Environment, Social and Governance (ESG),” says Joe.   

One of Linaco’s best highlights is its dedicated and committed 10% giving from its nett profit to Corporate Social Responsibility (CSR) since 2014 which has impacted many underserved communities especially children in Malaysia.

In addition, Linaco is working towards ISO 37001: Anti-Bribery Management System (ABMS), an initiative to uplift its business ethics and integrity between its stakeholders and suppliers.

“We hope more organisations will come together by doing their part in building a better and a healthier Malaysia. Our simple philosophy is, “We stop giving, when we stop breathing,” Joe concluded. 

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