Mah Sing exploring new growth opportunities in healthcare
30 Jul 2020
Property developer Mah Sing Group Bhd is exploring new growth opportunities in healthcare through its plastics manufacturing arm Mah Sing Plastics Industries Sdn Bhd (MSPI).
Mah Sing founder and group managing director Tan Sri Leong Hoy Kum said in recent years, MSPI had cultivated methods to process recycled plastics into quality pallets to be more environmentally friendly and this reflected the company’s commitment to reduce, reuse and recycle for a sustainable ecosystem.
“At present, 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 products. We intend to leverage on MSPI’s proven track record and expertise as a plastics manufacturer in Malaysia,” he told a press conference here today.
Also present was MSPI chairman Hong Hock Seng.
Meanwhile, Leong said the plastics segment had continuously contributed positively to the group’s performance with revenue of about RM76.1 million and an operating profit RM3.34 million for the first quarter ended March 31, 2020.
There is a separate management team for the plastics division which has been running it independently for many years. The division currently does not require capital expenditure (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, while the Indonesian operation is a 65 per cent owned subsidiary with a clientele list that includes Panasonic, Daihatsu, Toyota, Mitsubishi, Nissan, Mercedes-Benz, and Suzuki.
“Approximately 40 per cent of the Malaysian plastics’ operational sales and revenue comes from exports, with the top five export markets being Singapore, Thailand, Indonesia, Vietnam and the Philippines. The Malaysian factory focuses on proprietary products, especially material handling products,” he said.
According to Mah Sing’s 2019 annual report, MSPI supplies plastic products such as industrial containers, furniture, motorcycle safety helmets and pallets.