HAISAN Resources Bhd, which is listed on the Kuala Lumpur Stock Exchange second board, aims to further expand regionally after making inroads into the Philippines and China earlier this year.

In a statement released in Kuala Lumpur yesterday, its executive chairman Kamaruddin Md. Derom said the group¡¯s investments in the Philippines and China have provided them with a springboard to penetrate other markets in Asia.

            He said last year was significant for the development and progress of Haisan¡¯s temperature-controlled logistics and warehousing division.

            ¡°Given the enduring relationship with Unilevel Malaysia, we have also secured a five-year contract to provide temperature-controlled logistics services for Selecta Walls¡¯ range of ice-cream and confectionery products in the Philippines, while in China we manage the logistic needs for the entire range of Walls China¡¯s products,¡± Kamaruddin said.

            ¡°Our initial presence in the Philippines and China will allow us to further expand our services as a third-party logistics provider with expertise in the management of cold supply chains in the region.¡±

            ¡°China offers a potentially huge market as statistics show that the population enjoying fast-food will increase by 250 million individual in the next five years, while the Philippines presents excellent prospects with a population of over 75 millions and growing.

            Haisan¡¯s integrated temperature-controlled facilities are designed to ensure uninterrupted cold chains, which maintain the temperature of products from source to consumers.

            Haisan recently invested about RM 35 million to set up the largest fully integrated temperature-controlled facility in the Philippines through a join venture company, Integrated Global Low Temp Operations Phils, Inc (Iglo Philippines)

            It is a partnership between Haisan¡¯s wholly-owned subsidiary, Iglo International Ltd (37.5 per cent), and the Philippines¡¯ leading food and beverage enterprise, RFM Corp Inc (62.5 per cent).

            The facility has a capacity of 3,100 pallets in Phase 1, which was completed in April. The facility has achieved a take-up rate of 90 per cent.

            In China, Haisan has incorporated a wholly-owned subsidiary company, Iglo (Guangzhou) Co Ltd, to provide temperature-controlled logistics services.

            Situated in Guangzhou, the RM 9 million facility has the capacity to handle 1,700 pallets in the first phase, with the second phase handling up to 4,000 pallets. Operations started in March this year.

            Commenting on Haisan¡¯s long-term strategic plans, Haisan managing director Ong Chin Yet said: ¡°We aspire to tap into the Thailand, Indonesia and Indochina markets in the next two years; in the longer term, we may be looking at Cambodia and Vietnam.

            ¡°We believe that the current outsourcing trend in the logistics industry will provide us with the opportunity to expand our services, which utilize state-of-the-art technology and are of international standards.¡±

            For the year ended December 31, 2002, Haisan achieved a pre-tax profit of RM 5.61 million on the back of a turnover of RM 40.35 million. This represented a revenue growth of 12 per cent from RM 35.7 million the previous year.

            The group¡¯s temperature-controlled logistics and warehousing division, meanwhile, reported an increase of 49 per cent in revenue to RM 16.1 million for the period from RM 10.8 million the last time.

            Haisan also plans to tap the halal food market and turn Malaysia into a regional hub for such products.

            ¡°We believe that the potential of this initiative is tremendous as, based on a two billion Muslim population worldwide, 5 per cent of the halal food trade that Malaysia is targeting is worth  RM 65.74 billion  a year,¡± Kamaruddin said.

            ¡°We already have the capability to manage halal food products within our temperature-controlled facility in Port Klang,¡± he added. ¨C Bernama