(From left) Mah Sing Plastics’ non-executive chairman Hong Hock Seng, Mah Sing’s founder and group managing director Tan Sri Datuk Seri Leong Hoy Kum, Mah Sing Plastics’ executive director Lee Foo Keong at the MSPI facility.
“FORTY-ONE years ago, we started our plastics business and today we are one of the biggest high-tech plastic product manufacturer and one of the largest plastic pallets producer in Malaysia, ” said Mah Sing founder and group managing director Tan Sri Datuk Seri Leong Hoy Kum.
“We started our first property project 26 years ago and now we are a well-established property player with 50 projects.
“In 2020, we started our new venture into gloves and we target to be one of the top five producers in Malaysia in the future. Now, Mah Sing has its presence in property, plastics and glove manufacturing businesses.”
Mah Sing Plastics in numbers
• Incepted in 1979: 41 years of manufacturing experience.
• Four factories: Two in Malaysia, two in Indonesia.
• Largest clamping force machines in South-East Asia: 75 injection moulding machines with up to 4,000 tonnes clamping force.
• RM16.5mil invested in automation of production lines in Malaysia.
• Export market to 45 countries: 40% of Malaysian sales and revenue derived from export.
• MNC clientele in key industries including food & beverages, electronic & electrical, automotive, healthcare, petrochemical industries, plantation & oleochemicals and pharmaceutical.
Mah Sing Property in numbers
• 50 projects in Greater KL, Klang Valley, Penang island, Johor, and Sabah.
• Well-known for its quick turnaround and nimble business model, coupled with fast execution and financial prudence.
• Strong balance sheet with cash and bank balances at approximately RM1.13bil (as at June 30,2020) – well-positioned to maintain selective balance sheet expansion with Greater KL and Klang Valley being the focus.
• Remaining landbank of 811ha with remaining gross development value and unbilled sales totalling approximately RM24.64bil (as at June 30,2020).
• Continue to focus on providing affordably-priced homes of good quality with 91% of the group’s target sales in 2020 from residential properties priced below RM700,000.
Mah Sing enters new period of growth in proposed glove manufacturing and other medical device products
Mah Sing Gloves in numbers:
• First gloves manufacturing factory in Kapar, Klang – 12 new production lines with maximum production capacity up to 3.68 billion pieces of gloves per annum in Phase 1.
• Plan to start proposed glove production in April 2021 with ready factory for installation of glove dipping machinery.
• Targets expansion of 12 additional new production lines in Phase 2 to increase capacity up to another 3.68 billion pieces of gloves per annum if demand exceeds supply.
• Aims to be the top five producers in Malaysia, targets gradual expansion up to 100 lines, potentially producing up to 30 billion pieces if demand permits.
At this juncture, Mah Sing Healthcare has secured letters of intent from several prospective customers and the cumulative indicative orders have already exceeded the estimated maximum capacity for both phases of the Kapar factory.
If demand permits, Mah Sing Healthcare will gradually expand up to 100 production lines as part of future expansion plans. These 100 production lines could potentially produce approximately 30 plus billion pieces of gloves per annum.
As the Kapar factory is expected to start its operation with six production lines as early as 2Q 2021, the group is in a good position to take advantage of the high spot price of gloves.
Mah Sing expects the proposed glove manufacturing business to generate sales for the group relatively quickly with the projected contribution estimated to come in as early as 2Q 2021.
The new proposed gloves business, which predominantly targets the export market, will allow Mah Sing to ride on the booming glove-manufacturing segment and further strengthen its manufacturing division, which is currently focusing on plastics business.
This is expected to provide the group access to the global market and generate more recurring and steady income for the group. This will be a good complement to the property business which focused on the domestic market, and more cyclical in nature.
The group is also pleased to note the recent positive news flow regarding a potential vaccine for the pandemic.
Notwithstanding a viable vaccine for mass use being available, Mah Sing believes the demand for gloves is expected to persist post-pandemic, underpinned by stricter regulations and the increase in awareness of the importance of hygienic practices, especially in emerging markets where the glove consumption per capita is still low as compared with developed countries, which signals more room for long-term growth within this industry.
If you have any proposals regarding healthcare or medical devices related products, joint venture opportunities or interest in purchasing gloves, you may email the proposals or enquiries to healthcare@mahsing.com.my.
You may also submit your porposals at https://www.mahsing.com.my/blog/healthcare/
