New Zealand’s Fonterra says high-quality FTAs boost confidence to keep investing in Malaysia
11 Aug 2022
Fonterra, New Zealand’s largest business in Malaysia, says high-quality free trade agreements between both countries have given it continuous confidence to invest in the country.
The armer-owned dairy cooperative said this had contributed to local employment, domestic manufacturing and supporting Malaysia to become a re-export and halal hub for the region.
“Within the Southeast Asia region, Malaysia is a strategically important market for Fonterra, supported by the strong New Zealand-Malaysia bilateral relationship of more than 60 years,” the company said in a statement today, following the visit of New Zealand foreign affairs minister Nanaia Mahuta to Fonterra Brands Malaysia’s nutritional powder plant Susumas in Shah Alam.
Mahuta visited the plant as part of the New Zealand government’s strategy to reconnect New Zealanders with the rest of the world.
Fonterra began operations in Malaysia in 1975, and today, its business spans consumer, foodservice and ingredients with leading brands such as Fernleaf and Anlene helping to provide everyday dairy nutrition to Malaysian consumers.
Its chef-led foodservice business supplies and partners with over 10,000 food and beverage outlets.
Mahuta said the tour of the Susumas plant was a great opportunity to see safe, high quality and compliant New Zealand dairy products that helped feed Malaysian consumers and the rest of the Asia region.
“Fonterra places high value on sustainability in its use of natural resources and this is an important business practice encouraged by the New Zealand government for all Kiwi businesses selling their product to the world”, said Mahuta in the statement.
Also visiting Susumas from New Zealand, Fonterra chief executive officer Miles Hurrell said the confidence was reflected in the size of its business in Malaysia.
“We are proud to be New Zealand’s largest investor in the market, a market where we have been supplying high-quality dairy products for nearly 50 years. Fonterra’s commitment has helped Malaysia become New Zealand’s fourth largest dairy export market and we now
employ 560 staff locally.
“Looking ahead, we are excited about our future in Malaysia. Our strategy seeks to provide affordable nutrition for all Malaysian households, create functional nutrition solutions for consumers and accelerate our partnerships and innovation with customers”.
Fonterra has invested in two manufacturing sites in Shah Alam – Susumas (nutritional powder plant) and Dairymas (chilled plant).
These manufacturing sites supply product to the local Malaysian market for re-export, and also support new product development.
“These investments allow us to bring our expertise in dairy nutrition and sustainability to Malaysia. Our focus on sustainably has driven investment in solar panels, energy and water conservation, reducing our footprint and enabling us to provide high-quality, sustainable dairy nutrition to Malaysia and Southeast Asia,” said Shekhar Rapaka, general manager of Fonterra Brands Malaysia.
Source: NST
