Malaysia’s Ramly Burger has potential to go global – senior economist

Photo: A typical Ramly Burger stall in Malaysia / Santhia Panjanadan 

Malaysia’s Ramly Group has the potential to go global, says senior economist Yeah Kim Leng, as the iconic homegrown company announced it expects revenues to double, to 2 billion ringgit ($0.49 million), after its new production facility at Pulau Indah Halal Park opens at the end of 2017.

Ramly has become a household name in Malaysia over the past three decades. Apart from the Ramly Burger chain, Ramly Group also sells frozen burger patties, nuggets, seafood, minced meat and other products via retail grocery outlets. It currently exports to Singapore, Thailand, Indonesia, Cambodia, Myanmar and Bangladesh, and is looking at new markets like the Middle East, Japan and Korea as its production increases.

REGIONAL AND GLOBAL POTENTIAL

“The company must capitalize on the halal trend the [Malaysia] government is promoting together with its (i.e. Ramly's) strategic expansion plan outside the domestic market,” Yeah told Salaam Gateway.

Malaysia recently announced the formation of a new Malaysia Halal Council that it hopes will provide a stronger and unified platform for the development of the country’s halal industry.

According to Yeah, Ramly Group is well positioned to not only supply regional and Muslim-majority markets wanting halal products but also meet the global demand for high-quality meat.

“With the formation of the ASEAN Economic Community, [Ramly’s new facility] could turn into the production base that would supply a singular ASEAN market,” he said. “With the new production unit to be located in the Halal Hub Industrial Park, it will enjoy various customs facilitations and supporting services that are found among firms and businesses clustered in and around the industrial park.” He added that the firm would also be able to produce better-quality products at a lower cost.

Yeah is dean of the Malaysia University of Science and Technology School of Business and currently sits on Bank Negara Malaysia’s Monetary Policy Committee. He was previously Group Chief Economist at credit rating agency RAM for two decades.

The ASEAN Economic Community (AEC) is a joint effort by the 10-member grouping to coordinate trade activities in the region.

In Yeah’s opinion, Malaysia is already recognized as the world's leading Islamic financial center. He believes the country is also poised to make a name for itself as a halal producer if more homegrown companies can achieve economies of scale and go global.

Given the relatively small domestic market in Malaysia, Yeah said, the AEC and Trans-Pacific Partnership, the 12-country agreement that will lower trade barriers for its Pacific Rim signatories, would create opportunities for Malaysian firms to penetrate both regional and global markets.

Four ASEAN members—Brunei, Malaysia, Singapore, and Vietnam--are part of the TPP. Other signatories are Australia, Canada, Chile, Japan, Mexico, New Zealand, Peru, and the U.S.

“If Malaysian companies do not expand abroad like Ramly Burger, they will have to face the foreign companies in local markets sooner rather [than later], as trade barriers come down and technology quickens the pace of market integration,” said Yeah.

Despite uncertainties in the global economy, Malaysia’s halal exports recorded an encouraging performance last year, growing by 10.5 percent year-on-year to reach 42 billion ringgit. The country’s Halal Industry Development Corporation (HDC) would like this number to rise to 50 billion ringgit this year—a growth of 19 percent.

($1 = 4.12 ringgit)

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