THURSDAY, March 28, 2024
nationthailand

CPF poised to penetrate Malaysia as competition ruling imminent

CPF poised to penetrate Malaysia as competition ruling imminent

Charoen Pokphand Foods (CPF) is ready to penetrate Malaysia’s retail market despite not yet receiving approval from Thailand’s Trade Competition Commission for its acquisition of Tesco-Lotus’s businesses in Thailand and Malaysia.

CP already operates the 7-Eleven chain and Makro stores in Thailand, which has triggered worries of a retail monopoly.
In March, Charoen Pokphand (CP) informed the Stock Exchange of Thailand it had acquired shares in Tesco Stores in both countries.
The share purchases, which allow CP to acquire assets worth Bt338.445 billion, are subject to approval by Thailand’s TCC and Malaysia’s Domestic Trade and Consumers Affairs Ministry, respectively.
Prasit Boondoungprasert, CEO of CPF, said the company's strategy next year will focus on expanding market channels via Tesco Lotus in Thailand and Malaysia. He expects the TCC to conclude this issue soon.
"CPF is ready to penetrate the Malaysian market … because the company does not have suppliers in Malaysia," he said.
He added that the opening of Singapore’s market was also dependent on the TCC’s decision.
“Singapore has had to order chicken from Thailand instead of Malaysia because the Covid-19 outbreak has disrupted the transportation system," he explained.
He said the company's online systems to cope with the Covid-19 impact had also helped boost internet sales and reduce operating costs.
"However, the company will pay attention to producing healthy food as the Covid-19 outbreak has triggered public concern about health," he said.
He expected CPF business turnover this year to hit Bt540 billion, up 8 per cent year on year, boosted by overseas operations.
"Most of the revenue came from our companies in China and Vietnam after the African Swine Fever outbreak helped boost the price of pork," he said.
He added that the revenue from CP’s Vietnam operation is expected to rise further as it exports chicken to Japan with tariff privileges under the two countries’ trade deal.

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