The Arnott's Group chooses Kuala Lumpur as Asia Hub

The Arnott’s Group (TAG) has selected Kuala Lumpur as its Asia Hub as the company looks to expand its business in the region.

The company is targeting double-digit growth over the next five years in Asia — a market that is expected to double its annual food spending from US$4 trillion to US$8 trillion by 2030.

TAG Managing Director Asia May Lim said: “We chose KL as our Hub as the city is strategically located and is a natural springboard into Asian markets, the availability of skilled talent, as well as supportive government policies.

“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,” Lim said.

Senior Minister, Minister of International Trade and Industry (MITI), YB Dato’ Seri Mohamed Azmin Ali launched The Arnott’s Group’s Asia Hub in Kuala Lumpur.

The Senior Minister said, “This significant investment from The Arnott’s Group and the set-up of its Asia Hub fortifies Malaysia’s position as the investment location of choice, underpinned by our ease of doing business, robust infrastructure, vibrant business ecosystem and dynamic talent.”

The Asian business currently contributes a turnover of more than RM1 billion, which equates to a quarter of TAG’s total annual turnover. Annual revenue is estimated to reach RM2.5 billion in 10 years’ time.

The company's three-stage expansion plans (which could start before the end of the year) would include:

• AU$50 million investment in a manufacturing hub and recruitment of over 200 high technology jobs.
• A supply chain hub to consolidate all procurement, logistics, engineering and site management.
• A research and development hub which incorporates pilot plants, autonomous product development, as well as innovation and sensory work.

Lim said: “We are currently in active discussions with the Malaysian government about the opportunity to bring our expansion plans to life in KL.

“KL is home to our regional Hub, it’s a major transhipment base and provides easy access to a wide network of local suppliers who are closely connected to food producers across Asia.

“As such, KL is ideal for us to manufacture quality, great-tasting food and create delicious moments for consumers across Asia.

“We also intend to play a pivotal part in Malaysia’s development. We are aiming to drive automation and high-tech operations in line with Industry 4.0 through technology transfer, upskilling local personnel and our partners.

“We can also drive strong economic outcomes by partnering and contracting local suppliers and food producers. We also aim to create more high technology jobs through technology transfer, internships and skills training programs with local universities.”

InvestKL CEO Muhammad Azmi Zulkifli said, “We are pleased to facilitate the establishment of The Arnott’s Group Asia Hub in Greater KL, joining InvestKL’s list of over 100 leading global companies.”

MIDA CEO Datuk Arham Abdul Rahman said: “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.

“MIDA will facilitate the company’s extension of their manufacturing arm into a supply chain hub that will seamlessly oversee and support their operations regionally.”

Image credit: iStock.com/Rat0007