The Government, through EPP 8, is striving to develop the retail sector further
by facilitating the acquisition of stakes in foreign businesses. This will allow
local retailers to retain a portion of the profits from foreign brands in Malaysia,
as well as expand into international markets.
This EPP has seen the acquisition of two foreign brands since December 2010, with
Bonia Corporation Bhd acquiring a 70% interest in JECO Pte Ltd, a licensee of Pierre
Cardin leather goods in Singapore and a master licensee for Renoma in Singapore,
Indonesia and Malaysia.
The JECO Group is also the sole distributor of Bruno Magli products in Singapore
and the trademark and brand representative of Braun Buffel in Asia Pacific.
In 2011, another Malaysian retailer, Parkson Corporation Sdn Bhd, acquired 100%
of Indonesia's PT Tozy Sentosa, a subsidiary of PT Mitra Samaya, for US$12.8 million
This has provided Parkson access to Centro, an Indonesian department store chain,
and Kem Chicks, a gourmet supermarket chain with five branches in Jakarta, Yogyakarta
and Bali. Parkson has since expanded operations at two more Centro stores in Greater
Jakarta and Surabaya, while work is ongoing in two other locations.
- The EPP is identifying more acquisition targets for Malaysian retail players.