SPC to build halal food factory in Malaysia

South Korean food company SPC group said on Monday that it has invested 40 billion won ($31 million) to enter Malaysia’s halal market with its bakery brand Paris Baguette.

Halal refers to the types of food Muslims are permitted to eat in accordance with the Islam religion. As Muslims account for almost 24 percent of the world’s population, the SPC group plans to target the promising halal food market by using Malaysia as a launch base.

Malaysia is Paris Baguette‘s eighth overseas destination. The company plans to build a Paris Baguette factory in Johor Bahru, adjacent to the country’s border with Singapore and home to the Tanjung Pelepas port. The city’s location and port makes it a strategic point for efficient logistics transfer throughout Southeast Asia and the Middle East, according to officials.

The factory, designed to produce more than 100 items including bread, cakes and sauces, is scheduled to be completed in June next year.

Paris Baguette Singapore LTD, which directs Paris Baguette’s business in Southeast Asia, has established a joint corporation with Berjaya Food Bhd, which operates various food distribution brands such as Starbucks and 7-Eleven in Malaysia. The joint corporation, named Bergaya Paris Baguette, will open its first store in Kuala Lumpur at the end of this year. The SPC group aims to open more than 600 stores in Southeast Asia by 2030.

By Lee Jung-Youn (jy@heraldcorp.com)