Star Exclusive - Thong Guan on expansion mode

Star Exclusive - Thong Guan on expansion mode

GEORGE TOWN: Thong Guan Industries Bhd has earmarked RM150mil as capital expenditure (capex) for the next two years to expand its business in Malaysia and overseas. Of the planned capex, the packaging firm said it would invest about RM30mil to RM40mil to build a new plant in Myanmar. The remainder would be used for its Malaysian factory lines to produce stretch films and specialty mailer bags, as well as to install machinery for the manufacturing of food and beverage packaging products. Thong Guan group managing director Datuk Ang Poon Chuan told StarBiz the company’s planned venture into Myanmar, a low-cost production country, is in line with its aim to grow its plastic packaging material business as well as enhance its competitive edge in the industry. “The group would invest RM150mil in 2021 and 2022 to expand its business in Malaysia and overseas. Some RM30mil to RM40mil is for a new plant in Myanmar. We will go there once the border reopens, ” Ang said. The main lure of Myanmar, he explained, is the country’s status as a developing country, which would allow it to enjoy zero-tariff privileges for its exports. “Importers don’t need to pay any duty for the goods they buy from Myanmar; whereas if the goods are produced in Malaysia and they are heading to the United States, the importers over there would need to pay a 4.9% tariff. European importers, on the other hand, would need to pay a 6.5% tariff for Malaysian-made plastic packaging products, ” Ang said ...
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