Malayan Flour Mills Bhd (MFM) is allocating approximately USD 46 million in capital expenditure for FY 2025 to expand its poultry integration and flour operations in Malaysia and Vietnam.
This investment will be funded through a combination of internal resources and borrowings.
Scaling poultry integration with Tyson Foods
MFM will direct USD 34.3 million to enhance its poultry integration segment. This includes USD 21.4 million for new parent farms and hatcheries, and USD 12.9 million to upgrade existing facilities for improved productivity and supply chain efficiency.
The company is partnering with Tyson Foods to modernize its poultry farms, shifting from traditional open-house systems to climate-controlled housing, enhancing resilience to extreme weather and reduces bird mortality.
“With government support and rising demand, we see poultry as a strong growth sector. It remains the most affordable protein source,” said Teh Wee Chye, Executive Deputy Chairman and Managing Director.
MFM’s jetty infrastructure also allows for efficient bulk imports of feed ingredients like corn and soybean meal, optimizing cost efficiency and accelerating cash flow cycles.
Expanding flour operations in Malaysia and Vietnam
MFM is investing USD 11.8 million in its flour and grain trading segment, targeting capacity growth and automation in both Malaysia and Vietnam.
In Malaysia, USD 4.3 million will go toward upgrading flour mills in Lumut and Pasir Gudang, focusing on automation to reduce labor costs and enhance product consistency.
In Vietnam, MFM plans to invest around USD 4.6-7.5 million to expand capacity at its northern plant, and USD 2.9 million to construct silo and blending facilities in the southern region.
These investments are jointly funded by MFM and its partners Vima, Mekong, and DSM.
Outlook: Sustained growth and market leadership
Mr Teh noted that the company’s Vietnam flour plant is operating near full capacity, prompting approval for a new 500-ton-per-day mill to meet increasing demand.
In 2024, the Vietnam flour business generated over USD 428 million in revenue and USD 53 million in profit.
“These investments position us for sustainable growth and operational efficiency across key markets,” he said.
“Our commitment to automation and capacity expansion is central to becoming a leading staple foods supplier in the region.”