SPC Group Invests 40 Billion KRW in Malaysia... Establishes Joint Venture

Halal Food Dedicated Factory Groundbreaking "Full-Scale Entry into Halal Market"
Completion Next Year to Supply Products Across Southeast Asia and Middle East
Plan to Open Over 600 Stores in Southeast Asia by 2030

Aerial view of SPC Johor Bahru factory.

[Asia Economy Reporter Moon Hyewon] SPC Group's bakery brand Paris Baguette is entering Malaysia to target the halal market.

On the 20th, SPC announced that it has invested a total of 40 billion KRW in Johor Bahru, Malaysia's second-largest city, to build a halal-certified bakery factory and established a joint venture with the local company Berjaya Food Group.

SPC plans to use Malaysia as a forward base to enter the halal market covering Southeast Asia and the Middle East, targeting the 1.9 billion Muslim market, which accounts for 24% of the world's population.

Heo Jinsoo, President in charge of SPC's global business, stated, "By building a global halal factory in Malaysia, we plan to make a full-scale entry into the global halal food market worth 2,500 trillion KRW (2 trillion USD). We will continue to expand our global business more aggressively through bold investments."

SPC plans to open more than 600 stores in the Southeast Asian market and expand its business by 2030.

Malaysia, the eighth overseas country for Paris Baguette, is one of the leading ASEAN economic powers and a representative halal market with Islam as the state religion. In particular, the industrial complex Nusajaya Tech Park in Johor Bahru, where the factory will be built, is adjacent to the Singapore border and close to the Tanjung Pelepas Port, making it a strategic location for efficient logistics transportation throughout Southeast Asia and the Middle East.

The SPC Johor Bahru factory will be built on a site of 16,500㎡ with a total floor area of 12,900㎡ and is scheduled to be completed by June next year. It will be capable of producing about 100 items including bread, cakes, and sauces, serving as a production base supplying products to countries where SPC has already entered such as Singapore, Indonesia, Vietnam, Cambodia, and Malaysia, as well as Middle Eastern countries planned for future entry, targeting the global halal market.

Berjaya Group is a leading Malaysian company operating various businesses including real estate, distribution & food, and hotels & resorts, and manages various food and distribution brands locally such as Starbucks, 7-Eleven, Kenny Rogers Roasters, and Jollibee.

Meanwhile, since entering the Southeast Asian market starting with Vietnam in 2012, SPC has successfully targeted markets in Singapore, Cambodia, and Indonesia. In North America, it has surpassed 100 stores in the US market and entered Canada, is preparing to enter the UK in Europe, and is actively expanding franchise business in China, accelerating its global business.

This content was produced with the assistance of AI translation services.