GEORGE TOWN: As Teo Guan Lee Corp Bhd
celebrates its 90th anniversary, the branded baby and children’s wear distributor plans to tap into the adult apparel segment in the next one to two years.
Group executive chairman Toh Kian Beng told StarBiz that the apparel market in Malaysia is expected to continue growing at a healthy pace, given its projected 4% to 5% gross domestic product (GDP) increase in 2024 and 2025.
According to RAM Holdings Bhd, Malaysia’s GDP would hit 4.5% to 5.5% GDP growth in 2024 and 4% to 5% in 2025.
“With the monthly minimum wage rising to RM1,700, we expect households to spend more on clothes.
“Hence, we feel this is the right time for us to expand,” she said.
According to Statista, the apparel market in Malaysia is expected to grow to US$5.5bil in 2024 and increase annually at a projected 5.38% rate between 2024 and 2029.
Women’s apparel is the largest segment in the apparel market, with an expected volume of US$2.49bil in 2024.
According to Statista, the children’s apparel market is projected to reach US$165.90mil in 2024, displaying a 10.48% compounded annual growth rate, and hit a US$273mil market in 2029.
In December 2022, the group spent RM5.4mil to acquire a local premium children’s wear brand, Kiko, which has contributed positively to the group’s revenue.
“Our plan for the 2025 financial year is to open more counters in shopping malls in the urban areas.
“We expect to see the urban household spending more in light of the rise in minimum wage.
Toh noted, “We will also improve our online shopping platform to target the digital generation of parents. “
For the financial year ended June 30, 2024, profit after taxation decreased by 5.34% from RM11.37mil to RM10.76mil compared with the previous financial year.
As a result of the uncertain economic conditions ahead, the retail environment remains challenging.
Persistent inflation and increased food prices will also dampen consumers’ spending on apparel.
“Nevertheless, the management remains committed to improving its performance by implementing measures to control costs, optimising efficiency and streamlining its operations to minimise the impact,” she said.
Kian Beng’s grandfather, Toh Boon Keh, founded Teo Guan Lee as a sole proprietor in Nibong Tebal in 1934.
After arriving in Penang in 1922, Boon Keh worked as a ‘coolie’ in Nibong Tebal.
The company was incorporated as a private limited company and celebrated its 40th anniversary by opening a three-storey office at 24 Chulia Street, Penang.
On October 25, 1994, Teo Guan Lee took a significant step forward via its listing on the then Second Board of the Kuala Lumpur Stock Exchange.
Kian Beng is a third-generation Toh family member whose father, Datuk Toh Peng Hoe, was one of the four sons who took over the family business from their father, Boon Keh, in 1963.
