Malayan Flour Mills Allocates RM215mil for FY25 Capex

Malayan Flour Mills has allocated RM215mil in capital expenditure for FY25, with RM160mil for poultry integration, including expanding farming infrastructure and improving existing farms' productivity and supply chain efficiency. The remaining RM55mil will be invested in flour and grain trading, expanding capacity and improving efficiency in Malaysia and Vietnam. The poultry investment will be jointly funded by MFM and Tyson Foods in a 51:49 ratio.

KUALA LUMPUR: Malayan Flour Mills Bhd (MFM) has allocated RM215 million for capital expenditure (capex) in the financial year ending Dec 31, 2025 (FY25) to expand its poultry integration and flour trading operations in Malaysia and Vietnam. The capex will be financed through a combination of internally generated funds and borrowings [1].

The company has earmarked RM160 million for its poultry integration (PI) segment, with RM100 million allocated for the expansion and upgrading of farming infrastructure in collaboration with its joint venture partner. The remaining RM60 million will be used to upgrade existing farms to enhance productivity and supply chain efficiency. The poultry investment will be jointly funded by MFM and Tyson Foods in a 51:49 ratio [1].

MFM's executive deputy chairman and managing director, Teh Wee Chye, stated that the company is expanding its poultry business with government support due to Malaysia's heavy reliance on imported chicken and insufficient domestic production. He noted that poultry remains the most affordable source of protein, and the company is working closely with the government to capitalize on this opportunity [1].

The company has also planned RM55 million in investments for its flour and grain trading segment, including RM20 million for automation upgrades at MFM’s flour mills in Lumut and Pasir Gudang. This investment aims to reduce manual labor, boost efficiency, and ensure consistent product quality. Additionally, MFM plans to scale up operations in Vietnam with a total investment of RM34 million, comprising RM21 million for capacity expansion and operational upgrades at its northern Vietnam plant, and RM13 million for the ongoing construction of flour silos and blending facilities in the southern region [1].

The investments in automation and capacity expansion are timely, positioning MFM to capture future demand in both Malaysia and Vietnam. The company's long-term optimism for its flour and poultry businesses is reflected in its continued investments in infrastructure and technology, aiming to strengthen its competitive edge and drive sustainable growth [1].

References:
[1] https://thesun.my/business-news/malayan-flour-mills-earmarks-rm215-million-for-capital-expenditure-in-fy25-AE14101375