KUALA LUMPUR (Jan 23): Mah Sing Group Bhd has entered into an agreement with PT Gaya Sukses Mandiri Kaseindo to jointly carry out business relating to manufacturing and trading of plastic pallets, containers and related material handling and storing products in Indonesia.

In a statement on Tuesday, the property developer said its wholly owned subsidiary Mah Sing Plastics Industries Sdn Bhd (MSPI) entered into a master cooperation agreement with PT Gaya and that the venture will be carried out through a joint venture company whereby MSPI will hold 70% shareholding while PT Gaya will hold another 30%.

“The joint venture to expand the group’s plastic pallet manufacturing operations is strategically aligned with market trends of growing demand for plastic pallets in Indonesia, addresses capacity constraints in our Malaysian facilities to meet rising global demand for plastic pallets, leverages a trusted local partner, and builds upon our existing operational experience in Indonesia.

“The Indonesian plastic pallet market represents a significant growth opportunity for the group. Currently dominated by traditional wooden pallets, there is a growing trend and increasing demand for environmentally friendly and recyclable alternatives, especially plastic pallets.

“This shift is in line with global sustainability initiatives and aligns with the preferences of environmentally conscious businesses. By entering the Indonesian market now, we can tap into this evolving demand and position ourselves as a leading provider of sustainable pallet solutions,” it said.

Meanwhile, the group said the venture is expected to contribute positively to the future profitability of the group.

Mah Sing shares closed one sen or 1.12% higher at 90.5 sen, giving it a market capitalisation of RM2.18 billion.