KUALA LUMPUR: Dewina Holdings Sdn Bhd, which produces the Brahim’s brand food products, is targeting to enter Indonesia and Thailand in one year’s time.
Executive Chairman Datuk Seri Ibrahim Ahmad said currently, the group is in the midst of complying with Indonesian and Thai regulations before obtaining approval for all of its range of 42 products to be sold in those countries.
“Indonesia and Thailand have stringent rules and are sensitive in allowing foreign products into their market as they need to ensure local products are protected,” he told reporters after launching the group’s New Light Meals-Ready-To-Eat (MRE) products here today.
Ibrahim said the company is in talks with relevant parties to export its products containing meat into Europe and the United States.
“We already have our foundation in these countries but it is not that easy to bring in MRE products containing meat,” said Ibrahim.
He also said that with the new product line, sales are expected to increase by 15 per cent.
Currently, MRE rice meals contribute 40 per cent to sales with the balance coming from the MRE ready-to-cook sauce segment.
“With this latest product, sales contribution from MRE rice meals can increase to 50 per cent,” he said
When asked on the impact of the upcoming Sales and Service Tax (SST) implementation on Sept 1, Ibrahim said the company would need time to study the mechanism of the tax system once it is announced.
“For manufacturers, this will mean an additional tax of four per cent (from the Goods and Services Tax at six per cent) to 10 per cent.
“We are not sure if this will impact the end consumer as we have to take into account factors such as raw materials cost and the exchange rate as some ingredients are imported,” he added.