KUALA LUMPUR: Malayan Flour Mills Bhd
(MFM) outlined its RM100 million capital expenditure (Capex) plan for its flour milling business over two financial years, including the current financial year ending Dec 31, 2026 (FY2026).
Executive deputy chairman and managing director Teh Wee Chye said the investments aim at strengthening production capacity, operational efficiency, and long-term growth across the group’s flour milling operations in Malaysia and Vietnam.
Approximately RM80 million will be utilised to construct a new milling line at Vimaflour Ltd in Vietnam to increase production capacity and support growing regional demand, as the group’s Vietnam operations are currently operating at near full capacity.
The remaining RM20 million will be used to upgrade, automate, and implement other operational enhancement initiatives across the group’s flour milling operations in Malaysia and Vietnam.
"The flour mill (in North Vietnam) is running full capacity, and therefore we are expanding from 2,000 tonnes per day to 2,500 tonnes per day,” he told a press conference after MFM’s 66th Annual General Meeting (AGM), here today.
Meanwhile, Teh also said wheat futures prices have risen primarily due to adverse weather in the United States, the West Asia crisis, and rising fertiliser prices.
He said the food industry must work closely with the government to weather the current difficulties.
"Being a food company and classified as a food security company, we have to do our part,” he said.
Regarding the poultry integration business, MFM said the group recently commercialised its first range of halal-certified ready-to-eat (RTE) microwaveable meals comprising Charcoal-Grilled Satay, Ayam Masak Merah, Ayam Kicap, and Ayam Kam Heong.
Teh said the group will explore new opportunities to expand into new product segments and adapt to evolving consumer preferences.
"As one of the leading poultry producers in Malaysia, we believe we are well-positioned to leverage our integrated operations and strategic partnership with Tyson Foods to strengthen our presence in the value-added food segment,” he said.
Meanwhile, MFM said in a statement that it has a dividend policy of paying out at least 30 per cent of the group’s net profit after tax and minority interests (Patami).
It has paid 3.5 sen per share, or RM43.4 million, to shareholders for FY2025.
MSM said the payout was equivalent to 31 per cent of Patami of RM139.9 million, translating into a dividend yield of approximately 6.2 per cent based on the closing share price of RM0.565 as at May 15, 2026. - Bernama
