Kota kinabalu: Sabah beverage manufacturer Life Water Bhd expects stronger demand from the state’s tourism sector ahead of Visit Malaysia 2026, supported by rising arrivals and steady consumption from hotels and retail outlets. Its co-founder and managing director Liaw Hen Kong said the projected 3.3 million tourist arrivals in Sabah this year are expected to support higher sales.
According to BERNAMA News Agency, the projected increase in tourist arrivals, particularly from China, Japan, and Thailand, is anticipated to benefit Life Water Bhd, especially through the hotel segment, where they supply OEM bottled water. At a media briefing, Liaw expressed optimism, stating that the numbers could rise next year with more international arrivals.
Addressing shelf presence in airports, Liaw noted that Life Water has limited exposure because operators often prioritize premium brands. However, the company has strategic advertising at Sandakan Airport, ensuring travelers encounter their branding immediately upon arrival. Beyond airports, Life Water’s distribution network in Sabah extends to rural areas, plantations, and island communities where bottled water is essential due to inadequate water infrastructure. Liaw highlighted the company’s fleet of over 90 trucks supporting efficient distribution throughout the region.
On the cost front, Liaw mentioned that declining polyethylene terephthalate (PET) resin prices are easing input costs, enhancing their operating outlook. PET resin, a primary raw material for bottled water, has been on a multi-year downtrend, with prices dropping by approximately RM500 per tonne annually. This year, PET resin prices are closer to RM3,500 per tonne, down from RM4,500 two years ago. Additionally, the recent strengthening of the ringgit has reduced import costs for the group.
Life Water recently reported a 25.1 percent increase in net profit, reaching RM9.37 million for the first quarter of the financial year ending 2026, compared to RM7.5 million a year earlier. Revenue also saw an upturn, climbing to RM51.23 million from RM42.59 million, driven by higher drinking water bottle sales.