Farm Fresh Deepens Expansion in Two Key Southeast Asian Markets, Targeting a 500-Million Population Opportunity

KUALA LUMPUR, Nov 24 — Malaysia’s largest integrated dairy producer, Farm Fresh Bhd (FFB, 5306), has set its sights on a new frontier — the 500-million population market across Southeast Asia.

Although already a market leader in Malaysia’s dairy and cattle-farming sector, the company aims to scale its overseas presence to further grow revenue and market share.

In an interview with Oriental Daily’s business desk, Managing Director and CEO Loi Tuan Ee revealed that Farm Fresh is targeting the Philippines and Cambodia as its next major growth markets.

He said the Philippines’ dairy sector remains underdeveloped, leaving ample room for competition, while Cambodia is seeking to reduce its reliance on Thai dairy imports amid strained bilateral ties — making it receptive to Farm Fresh’s entry.

“We are in talks with Filipino government agencies. If we secure several hundred acres of land, we can raise 4,000 to 5,000 dairy cows,” Loi said.

He added that although Indonesia has the region’s largest population, its dairy industry is mature and highly competitive.

Philippines and Cambodia as entry points to a 500-million market

IMF population estimates:

• Philippines: 114 million
• Cambodia: 17.35 million
• Thailand: 70 million
• Indonesia: 280 million

Loi said that once Farm Fresh establishes stable operations in the Philippines and Cambodia, the company plans to expand further into Southeast Asia, tapping into a combined market exceeding 500 million consumers.

Farm Fresh’s overseas revenue currently accounts for less than 20%, but the company aims to raise this to 30%–40% in the coming years.

Domestically, Farm Fresh will continue expanding its herd. It currently operates Malaysia’s largest cattle farm with 12,000 cows, expected to grow to 15,000 next year.

RM300–400 million capex over the next two years

Including its ice cream business expansion, Farm Fresh plans RM300–400 million in capital expenditure within the next two years.

Loi said no additional fundraising is needed, as the company recently issued RM150 million in sukuk and generates approximately RM200 million in annual EBITDA.

Khazanah’s share disposal is normal portfolio rebalancing

Loi also commented on Khazanah Nasional’s recent stake reduction.
He said Malaysia’s sovereign wealth fund likely viewed the move as part of normal portfolio rebalancing, having already earned an estimated RM900 million return on its Farm Fresh investment.

Khazanah acquired 30% of Farm Fresh for RM20 million in 2011 and began paring down its stake after the company’s 2022 IPO. Its shareholding is now below 5%.