Issue 53

The potential of Thailand’s supermarkets is proving an attractive market for Malaysian food companies.

The Thai retail industry is growing by around 10%, turning it into a very large market, as well as an important part of ASEAN.

“You can see more and more supermarkets and convenience stores opening, so they also need a greater variety of products,” says Niqman Rafaee M. Sahar, Trade Commissioner and Counsellor of the Embassy of Malaysia. “Malaysia could offer a wider product range to the market.”

Niqman regards THAIFEX as an important trade fair to showcase products on the regional markets. “We have more than 70 Malaysian companies joining THAIFEX to promote Malaysian products and services,” he says, adding that the Malaysian government promotes these goods through Matrade.

Major players from Thailand, such as CP, Makro, BigC and Berli Jucker, have already seen the opportunity presented by Malaysian products.

“Thailand is an interesting market not only for local buyers but also for the many tourists who come to Thailand for shopping,” he says. Typical products include snacks, chocolate, sweets, processed food and beverages. “These are the products that consumers are looking for.”

According to Niqman, the size of the market in Thailand is growing by 3.5% for food and beverages, and by 20 to 25% for ready-to-eat products. “People in Bangkok in particular are very busy so they prefer to buy ready-to-eat products,” he says. “People are also concerned about healthy products, especially the middle class. Malaysia can offer healthy food, ready-to-eat products, snacks and confectionary to an international standard. The government and Matrade play important roles to help promote these products.”

Niqman believes that Thai and Malaysian products have different markets. “Local Thai producers target lower and middle income people, but Malaysian products exported to Thailand are premium.”

The Malaysian government also offers investment incentives to Thai companies. “There are already Thai companies investing in Malaysia, for example, CP, Central and Tops Supermarket. So they can bring Thai products together in Malaysian markets,” he says.

Niqman believes it’s important to seek the right partner when investing in Thailand. “Malaysian companies wishing to enter Thailand need to have a good local partner who can assist or guide them on local regulations, so the products can enter the market quicker and at a lower cost,” he says.

For more information, please visit www.matrade.gov.my

Words by Natthinee Ratanaprasidhi