Speech by MFM chairman
Posted Date : 29 Jan 10
SPEECH BY TAN SRI DATO’ SERI ARSHAD BIN AYUB
CHAIRMAN OF MALAYAN FLOUR MILLS BERHAD
SIGNING CEREMONY OF JOINT VENTURE AGREEMENT
BETWEEN MALAYAN FLOUR MILLS BERHAD, TOYOTA
TSUSHO CORPORATION AND TOYOTA TSUSHO
(SINGAPORE) PTE. LTD.
HOTEL NIKKO KUALA LUMPUR
29 JANUARY 2010
Yang Berhormat Dato’ Jacob Dungau Sagan, Deputy Minister of International Trade and Industry
His Excellency Masahiko Horie – Ambassador of Japan to Malaysia
Mr Makoto Hyodo – Managing Director of Toyota Tsusho Corporation
Yang Berbahagia Dato’ Seri Jamil Bidin – Managing Director of Halal Industry
Development Corporation Sdn. Bhd.
Mr Teh Wee Chye – Managing Director of Malayan Flour Mills Berhad
Tan Sri -Tan Sri, Dato’ Seri - Dato’ Seri, Dato’- Dato’
Members of the Board of Malayan Flour Mills Berhad
Members from Toyota Tsusho Group
Tuan-tuan dan puan-puan
I would like to bid you a warm “Selamat Petang” or “Konnichiwa” to our partners from Japan.
Today, 29th January 2010 marks a very important milestone in the history of Malayan Flour Mills Berhad. On this auspicious day, Malayan Flour Mills Berhad will sign a Joint Venture Agreement with Toyota Tsusho Corporation and Toyota Tsusho (Singapore) Pte Ltd to establish Premier Grain Sdn. Bhd., a joint-venture company for the purpose of carrying out the trading of raw materials for animal feeds in Malaysia.
Malayan Flour Mills Berhad or MFM in short, established its first flour mill in Lumut, Perak in October 1966. Since then, the Company has grown with flour mill operations in Pasir Gudang, Johor in 1992, Hanoi in 1998 and Ho Chi Minh City in 2003. We are also in the feed and poultry industries in Malaysia.
We are very honored and proud to have the honorable Deputy Minister of International Trade and Industry, Dato’ Jacob Dungau to officiate this signing ceremony and the launching of the corporate logo “Premier Grain”.
We are especially grateful to Mr Makoto Hyodo, the Managing Director of Toyota Tsusho Corporation, for his presence today. Toyota Tsusho Corporation, a member of Toyota Motor Group, is a diversified company listed on the Tokyo and Nagoya Stock Exchanges with a turnover of over 6 Trillion Yen or approximately RM240 billion.
The signing of the joint venture today by the Managing Director of MFM, Mr Teh Wee Chye, Mr Makoto Hyodo, the Managing Director of Toyota Tsusho Corporation and Mr Koji Ikami, the Managing Director of Toyota Tsusho
(Singapore) Pte. Ltd., was the result of numerous successful and cordial business dealings between MFM and Toyota Tsusho Corporation Group. The relationship between MFM and Toyota Tsusho flourished after the successful
merger of Toyota Tsusho with Tomen Corporation in 2006, a Japanese trading company listed on the Tokyo and Nagoya Stock Exchanges.
Tomen Corporation had a long and established relationship with MFM dated back to 1976, when my good friend Mr Teh Liang Teik was the Chief Executive Officer of MFM. The idea of the joint venture was mooted in year 2008 as both parties felt that a joint venture will have a synergistic effect. In September 2009, a decision was reached culminating in the signing ceremony today.
I am confident this joint venture company, Premier Grain Sdn Bhd, will benefit customers in Malaysia arising from the established relationship that MFM has developed with our customers all these years and Toyota Tsusho’s global supply network. Going forward, the Company will work diligently to establish itself as a quality conscious, reliable supplier of raw materials for the feed industry through the brand “Premier Grain”.
FAO reported that the world population will grow from 6.8 billion in 2009 to 9.0 billion in 2050. Demand for food is expected to grow by 70% by 2050. We see growth opportunities in the food business despite the meltdown in the world economy in 2009 and are committed to invest further in this sector to achieve our vision, which is “to be one of the leading food manufacturing concerns in the region”. This joint venture will strengthen our commitment towards it.
The joint venture with Toyota Tsusho is the first with our esteemed partner and we expect other joint ventures with Toyota Tsusho to follow. The Joint Venture will also enable the MFM Group to achieve one of its vital key success factors, which is to grow further in economies of scale in the food business as well as enhancing the efficiency of its business.
We are happy to have in our presence Dato’ Seri Jamil Bidin from the Halal Industry Development Corporation who has agreed to collaborate with MFM. We are working with the Halal Industry Development Corporation on our expansion plan, in the flour, feed and poultry sectors with the objective of obtaining HALMAS accreditation.
To our customers, we believe Premier Grain will add value to your business by supplying you with raw materials of consistent quality and reliability.
Once again, I wish to thank you for your presence to make this event meaningful and please enjoy the rest of the evening.