KUALA LUMPUR: Parlo Bhd, a travel management and services company is acquiring SimplyK Sdn Bhd (SimplyK), a supplier of fabric material and personal protection equipment.
Both companies has signed a memorandum of understanding (MoU) to explore potential of a joint venture or acquisition.
SimplyK has applied necessary government approvals or licenses and certifications to distribute, produce, and export medical equipment, including face masks and gloves to contribute in its fight against the Covid-19 pandemic.
Executive director Ti Lian Seng said demand for medical equipment will continue to rise driven by the rising demand for compliance of the standard operational procedure (SOP) in Malaysia to combat the pandemic.
"We are excited about the potential joint venture or acquisition of SimplyK as we believe that we have the corporate know-how to facilitate in the expansion of SimplyK's business reach," he said.
Ti said the partnership would be a stepping stone to facilitate in the growth of SimplyK products' geographical reach and potentially expand into the Myanmar market and other Southeast Asia countries.
He said Parlo will be able to value-add SimplyK by enhancing its production output by increasing their exposure into international trade by capitalising on collaboration with Myanmar partner.
"Supported by the experienced owners of SimplyK, we have no doubt that we will be able to facilitate the growth of SimplyK into a formidable manufacturer and supplier of high-quality face masks into the global market," he said.
SimplyK director Lee Kian Tiam said the company sees demand for disposable face masks will still be high due to the on-going fight against the pandemic.
"Societal habits are changing since the pandemic struck, as wearing face masks is now becoming the new norm.
"We are confident that by signing this MoU with Parlo, it will facilitate in our bid to expand our business reach internationally as Parlo has the corporate know-how to guide us.
"We believe this will provide us with sustainable growth for our company for the years to come," he added.