The Arnott’s Group chooses Kuala Lumpur as Asia Hub
24 Aug 2022
Australia’s The Arnott’s Group (TAG), a multinational food manufacturer and producer of Prego and Kimball, has launched its Asia hub in Kuala Lumpur in line with its expansion plans to become the regional powerhouse.
TAG is targeting double-digit growth over the next five years in Asia and annual revenue of RM2.5 billion in 10 years. Its Asian business currently contributes over RM1 billion annually, a quarter of total annual turnover.
TAG managing director (Asia) May Lim said it chose KL as its hub as the city is strategically located and is a natural springboard into Asian markets as well as the availability of skilled talent and supportive government policies.
“We are looking at a three-stage growth plan, and KL is at the top of the shortlist to be the epicentre of our expansion. Malaysia is the world’s leading halal hub, and 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 recruitment of over 200 talents in high-valued and high technology jobs; development of a supply chain hub to consolidate all procurement, logistics, engineering, and site management; and a research and development hub.
TAG is still in active discussions with the Malaysian government to get the approval of the plans.
Senior Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali who launched the hub, said the investment fortifies Malaysia’s position as the investment location of choice, underpinned by 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 – in line with the National Investment Aspirations, which prioritise state-of-the-art, cutting-edge technology and global environmental, social and governance standards,” he added.
InvestKL CEO Muhammad Azmi Zulkifli said Malaysia stands to benefit from the positive economic value and spillover, complementing its transformation into a digitally enabled and technology-driven nation.
Additionally, Malaysian Investment Development Authority CEO Datuk Arham Abdul Rahman said the decision to house TAG’s Asia Hub in Malaysia is a vote of confidence these multinationals have in Malaysia as a nation.
“Malaysia is an emerging global food producer and a leader in the world’s halal industry. We are a haven for over 300 international food brands and processed food producers due to our strategic location in Asean, conducive investment climate, skilled and trainable workforce, strong trade relations and cost advantages – possibly one of the easiest places for businesses to incorporate in the region,” he added.
Source: The Sun Daily