KUALA LUMPUR: Leading multinational food manufacturer The Arnott's Group (TAG) is looking to ramp up its expansion plans to become a regional powerhouse from its newly-launched Asia hub here.
TAG is the maker of much-loved Australian and local brands such as Arnott's, Prego and Kimball.
TAG is targeting double-digit growth over the next five years in Asia, a market that is home to some 60 per cent of the world's population.
Asia was expected to double its annual food spending from US$4 trillion to US$8 trillion by 2030, according to the group.
TAG's Asian hub in Kuala Lumpur was launched by Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali today.
"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," Azmin said.
He added that the group's expansion plans in high-value activities would create positive economic opportunities for Malaysians.
According to Azmin, Australia was Malaysia's 13th largest trading partner last year and both countries had signed a comprehensive strategic partnership.
Malaysia trade with Australia in 2021 recorded an increase of about 30 per cent to US$14 billion compared to 2020.
TAG managing director of Asia May Lim said the hub had a centralised leadership team here responsible for unifying operations across Asia to pursue its ambitious growth plans.
"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."
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 from Asia is estimated to reach RM2.5 billion in 10 years.
"The Asia hub is paramount to TAG's future success. We are looking at a three-stage growth plan, and KL is at the top of the shortlist to be the epicenter of the expansion.
"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.
Halal food exports in global markets are expected to reach US$3 trillion within the next five year from US$2 trillion currently.
TAG's three-stage expansion plans, which could start before the end of the year, will include a A$50 million investment in a manufacturing hub and recruitment of over 200 talents in high valued and high technology jobs, and a supply chain hub to consolidate all procurement, logistics, engineering, and site management.
"We are currently in active discussions with the Malaysian government about the opportunity to bring our expansion plans to life in KL," she said.
KL, Lim added, was a major transhipment base and provided easy access to a wide network of local suppliers who were 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."
With a collection of leading consumer brands, and some 3,000 employees across Asia Pacific, TAG said it had much to offer Malaysia too.
InvestKL chief executive officer (CEO) Muhammad Azmi Zulkifli said TAG's Asia hub joined its list of over 100 leading global companies.
"TAG is one of many success stories that showcases Greater KL's viability as the hub for innovation, technology and ESG type of activities.
Malaysian Investment Development Authority CEO Datuk Arham Abdul Rahman said TAG's decision to house its Asia hub in Malaysia was a vote of confidence these multinationals had in the nation.
"For many years, Malaysia has become a preferred principal destination for multinational corporations to grow their businesses in the region and globally," he added.