PETALING JAYA: Staple foods producer Malayan Flour Mills Bhd (MFM) outlined at its 66th annual general meeting today the capital expenditure (capex) plans for its flour milling business, amounting up to RM100 million over two financial years, including the current financial year ending Dec 31, 2026 (FY2026).
The planned investments are aimed at strengthening production capacity, operational efficiency, and long-term growth across the group’s flour milling operations in Malaysia and Vietnam. The capex will be financed with internally generated funds and bank borrowings.
Of the total capex, about RM80 million will be utilised for the construction of a new milling line at Vimaflour Ltd in Vietnam to increase production capacity and support growing regional demand, as the operations there are operating at near full capacity.
The remaining RM20 million will be utilised for upgrading, automation, and other operational enhancement initiatives across the group’s flour milling operations in Malaysia and Vietnam.
The flour and grain trading segment delivered a strong performance in FY2025, with adjusted profit after tax rising 21.8% to RM153.6 million from RM126.1 million in the previous year, supporting the group’s continued expansion plans for the segment.
Executive deputy chairman cum managing director Teh Wee Chye said: “As one of the leading staple food producers in the country, we recognise our responsibility in ensuring the stable and uninterrupted supply of essential food products to the market. The investment aligns well with the strong growth momentum we are seeing in our flour business, particularly in Vietnam. The expansion will strengthen our production capacity and support growing regional demand moving forward.
“We believe continued investments across our integrated value chain are important to enhance long-term operational resilience and reinforce the group’s position as a reliable food security player in the region.”
MFM has a dividend policy of paying out not less than 30% of the group’s net profit attributable to shareholders (Patmi), and has paid 3.5 sen per share, or RM43.4 million, to shareholders in respect of FY2025. The payout was equivalent to 31% of Patmi of RM139.9 million, and translates into a dividend yield of approximately 6.2% based on the closing share price of RM0.565 as at May 15.
