PETALING JAYA: Tafi Industries Bhd
is proposing a diversification of its trading segment to include standalone trading contracts for building materials.
In a filing with Bursa Malaysia, the company said the diversification is part of the group’s strategy to further optimise its business profile.
The group is principally involved in construction, property development, manufacture and trading of furniture products and sales of solar panels, inverters, as well as solar related products and services.
On Dec 3, 2025, the company announced the disposal of a piece of freehold land together with a factory building erected thereon, alongside with its decision to discontinue the group’s own loss-making furniture manufacturing activities.
“Notwithstanding the discontinuation of its furniture manufacturing activities, the group will maintain its market presence in the furniture industry through the trading and supply of furniture, fittings, household decoration, and furniture related products and services sourced from other suppliers and manufacturers.
“Meanwhile, the group has been trading and supplying building materials and construction related equipment under its construction segment as ancillary services to support its construction activities.”
Moving forward, Tafi said it intends to expand the trading segment by entering into standalone trading contracts for building materials as part of the group’s strategy to further optimise its business profile.
“Accordingly, the proposed diversification is undertaken to include the trading and supply of furniture and fittings as well as building materials under the trading segment.”
Tafi noted that it is undergoing a strategic shift from traditional mass manufacturing towards a high-value, project support model.
“This transition is aimed at streamlining non-core operations and leveraging its supply chain activities, thereby creating a more balanced business profile that diversifies and expands the group’s revenue streams while mitigating market volatility.
“The discontinuation of its in-house manufacturing activities is expected to eliminate significant factory overheads and improve cash flow. The group will continue to fulfil existing letters of award while leveraging its supply chain and operational capacity to accommodate anticipated orders from potential third-party customers and the related parties pursuant to the recurrent related party (RRPT) mandate.”
“Moving forward, Tafi said all trading and supply of furniture and fittings under the trading segment will be fulfilled and sourced externally from its established network of subcontractors and suppliers.
“Separately, the strategic expansion of trading and supply of Building Materials from an internal project support and procurement function to an independent revenue-generating trading business enables the group to leverage its established supply chain and supplier network, secure external supply contracts, as well as to strengthen its position as an integrated service provider for construction projects.
