Saturday 31 August 2013

SCGM - Thermo-vacuum plastic packaging maker

leveraging on technology automation as well as entering new markets to bring the company to the next level of growth

The Johor-based company's MD Datuk Seri Lee Hock Seng is confident SCGM will grow exponentially with its focus on continuous expansion and investment to upgrade its assets and resources.

Looking to penetrate the New Zealand market. Also aim to export products to some East European countries and North Africa in the future. Pakistan and Cambodia also offer good opportunities.

Plan to increase its exports to India in November as well as to Myanmar, China, Hong Kong, US, Australia, Indonesia, Middle East and Portugal.

40% of the company's products are exported

The company has allocated RM3m-RM4m to acquire machinery to produce dual-coloured plastic packaging in a single production line,a first in the country.

Currently, the company's production lines consist of 33 automatic forming machines, 22 hydraulic die-cut machines and 6 extrusion machines.

As the use of plastic packaging for the food and beverages and healthcare industries grows, SCGM expects to become one of the largest suppliers of thermo-vacuum plastic packaging in Asia. According to industry research, the global packaging industry will experience substantial growth with total revenue to hit US$530b next year. This represents an increase of 24% over 2009 with plastic packaging being the largest segment of growth.

The Australian market also looks interesting for this sector. In mid-2012, Australia's Amcor Ltd, the world's largest packaging company, merged with Aperio Group, its Australian competitor, causing price distortions in the plastic packaging market. This has resulted in major F&B players in Australia seeking alternative plastic packaging suppliers with lower prices, This development could benefit SCGM and other players such as Daibochi Plastic and Packaging Industry Bhd and Tomypak Holdings Bhd.

Currently, 75% of the company's revenue is derived from the F&B industry while the remaining 25% is split into 15% from the medical and 10% from the electronic sector.

The company also has 5 extrusion lines to produce high-quality raw materials, including sheets and films for food and produce packaging, folding boxes, sealed trays and containers. Being able to manufacture its own raw materials enables the company to have more control over costs.

SCGM's clients include Munchy Food Industries Sdn Bhd, Hup Seng Perusahaan Makanan (M) Sdn Bhd, Hwa Tai Industries Bhd, Mondelez Malaysia Sdn Bhd (formerly known as Kraft Malaysia Sdn Bhd) and Gardenia Bakeries (KL) Sdn Bhd.

The clients are major manufacturers of consumer products and F&B in Malaysia and those companies have placed orders with SCGM for more than 2 decades.

The company has 49 designs registered with the Intellectual Property Office of Singapore and 58 designs registered with the Intellectual Property Corporation of Malaysia.

The rise and rise of SCGM 

A shrewd businessman with a hands-on approach, Datuk Seri Lee Hock Seng set up SCGM Bhd with his 3 younger brothers in Kulai, Johor in 1984.

His company started producing food packaging in a shophouse with just 2 machines. Over the years, the company expanded to another 2 shophouses before it bought over a new Kulai factory measuring 3.64ha in 1992.

Since the, the company has moved on to supplying plastic packages to major food and beverage players in Malaysia and overseas.

SCGM was listed on Bursa Malaysia in 2008 at 78sen.

The quality of the company's products has enabled it to win the Enterprise 50 Awards; it is the sole company to have won the award for 9 consecutive years from 2001.

Monday 26 August 2013







董事经理斩钉截铁地说,公司位于新山UluTiram以东10公里,Tanjung Langsat工业区以北的8000多英亩园丘,具有产业发展潜能。

















Water usage

Penang: 302 litres/ person/ day,
National average: 210 litres/ person/ day
United Nations recommendation: 50-100 litres/person /day

How to estimate water usage/ person/ day
1. Get the volume of water (m3) used from your month water bill
2. Multiply the volume (m3) by 1,000 to convert the volume into litre
3. Divide the volume (litre) by 30 days, then further divide by the number of people in your house to obtain water usage/ person/ day

1. My house uses about 13m3 per month
2. Volume in litre = 13 x 1,000 = 13,000 litres
3. 4 people in my house. Water usage/ person/ day = (13,000/ 30 )/4 = 108 litre/ person/ day

Be environmentally friendly

Friday 23 August 2013


RRI land was purchased in 2012 by EPF subsidiary Kwasa Land Sdn Bhd for RM2.28b

726ha (with both freehold and leasehold status)

Kwasa Damansara will be developed over 15 years, beginning 2013. Development will commence at the Northern side to support ongoing development of the MRT line.

The master layout entails a mix of residential, commercial, recreational, institutional and educational facilities creating a new population of 150,000 to 200,000.

Kwasa Damansara will contain two MRT stations, the Kota Damansara and Taman Industry Sungai Buloh stations, complemented by bus and taxi networks, and existing roads systems as well as the upcoming Damansara-Shah Alam (DASH) highway.

Thursday 22 August 2013

HUAYANG - Typical breakdown of house price

BFM interview with Hua Yang CEO, Ho Wen Yan 
22 Aug 2013

Typical breakdown of house price

10-20% land cost
40-50% construction cost
25-30% gross profit