Kuala Lumpur: Malayan Flour Mills Bhd (MFM) has outlined a strategic capital expenditure plan of RM215 million for the financial year ending December 31, 2025 (FY2025).
According to BERNAMA News Agency, MFM will allocate RM160 million to its poultry integration segment. Of this, RM100 million is designated for the expansion and upgrade of farming infrastructure, which includes the construction of parent farms and hatcheries, as stated by the company’s executive deputy chairman and managing director, Teh Wee Chye. The remaining RM60 million will fund improvement works at existing farms to enhance productivity and supply chain efficiency. This investment will be jointly funded by MFM and its partner in a 51:49 ratio.
In May 2021, MFM entered a joint venture with meat processor and marketer Tyson Foods to bolster its poultry segment. This partnership aims to leverage Tyson’s global network, proprietary technology, and market reputation to boost sales, access export markets, and improve operational efficiency.
Meanwhile, the flour and grain trading segment will see an investment of RM55 million to expand capacity and improve efficiency in key markets across Malaysia and Vietnam. ‘This includes RM20 million for automation at our flour mills in Lumut and Pasir Gudang to reduce manual labor, enhance efficiency, and ensure consistent product quality,’ Teh mentioned at a press conference following the group’s 65th annual general meeting.
In Vietnam, MFM plans to invest RM34 million to scale operations. Of this, RM21 million will be directed towards expanding capacity and upgrading its northern Vietnam plant, while RM13 million is earmarked for constructing flour silos and blending facilities in the southern region. ‘These strategies enable us to meet the growing demand for flour and flour-related products in both Malaysia and Vietnam,’ Teh added.
Addressing the ongoing price-fixing investigation involving its joint venture company, Dindings Poultry Development Centre Sdn Bhd, MFM’s chief financial officer Alan Yau Tee Peng stated that the hearing has commenced but remains ongoing. ‘The next session is scheduled for end-June. We will go through the process and await the tribunal’s decision,’ he commented.
Yau noted that the matter is still in its early stages, emphasizing, ‘We believe we have not committed any of the alleged violations made by the Malaysia Competition Commission (MyCC), and we stand by our position.’ He further argued, ‘Even in the worst-case scenario, we strongly believe the RM70 million fine is erroneous.’
MFM has recently completed a state-of-the-art poultry processing plant with a slaughtering capacity of 280,000 birds per day, expandable to 340,000 birds. Its processed poultry products are marketed under the brands Ayam Dindings, Ayam Fiesta, Jimat Fiesta, and DeliHous.