The Arnott’s Group (TAG), an Australian multinational food manufacturer and producer of Prego and Kimball, has opened an Asia hub in Kuala Lumpur as part of its plans to become a regional powerhouse.
TAG aims for double-digit growth in Asia over the next five years and annual revenue of RM2.5 billion in ten years. Its Asian business currently contributes more than RM1 billion per year, accounting for one-quarter of total annual turnover.
TAG managing director (Asia) May Lim stated that the company chose KL as its hub because of its strategic location and natural springboard into Asian markets, as well as the availability of skilled talent and favourable government policies.
“We are considering a three-stage growth strategy, with KL at the top of the list as the epicentre of our expansion.” “We intend to drive halal certification for brands in our new manufacturing hub, which will be exported worldwide,” she said at the launch event today.
TAG’s three-stage expansion plans include a $50 million (RM155 million) investment in a manufacturing hub and the hiring of over 200 people in high-value, high-technology jobs; the creation of a supply chain hub to consolidate all procurement, logistics, engineering, and site management; and the establishment of a research and development hub.
TAG is still in active talks with the Malaysian government to get the plans approved.
Datuk Seri Mohamed Azmin Ali, Senior Minister of International Trade and Industry, who launched the hub, said the investment strengthens Malaysia’s position as the investment destination of choice, owing to the ease of doing business, robust infrastructure, vibrant business ecosystem, and dynamic talent.
“The group’s expansion plans in high-tech and high-value activities will create positive economic opportunities for the business community, ecosystem, and Malaysians,” he added.
According to InvestKL CEO Muhammad Azmi Zulkifli, Malaysia will benefit from the positive economic value and spillover, which will complement the country’s transformation into a digitally enabled and technology-driven nation.
Furthermore, Malaysian Investment Development Authority CEO Datuk Arham Abdul Rahman stated that the decision to house TAG’s Asia Hub in Malaysia is a vote of confidence in Malaysia as a nation.
“Malaysia is an emerging global food producer and a global halal industry leader.” Because of our strategic location in Asean, conducive investment climate, skilled and trainable workforce, strong trade relations, and cost advantages, we are a haven for over 300 international food brands and processed food producers – possibly one of the easiest places for businesses to incorporate in the region,” he added.
