SINGAPORE: Singapore supermarket operator and retailer Sheng Siong Group Ltd is in talks with a potential partner to help it expand into neighbouring Malaysia, a senior executive said.
Sheng Siong, which owns 25 stores in Singapore today, aims to own at least 50 outlets in Malaysia over the longer term, as a fast-growing population and rising income will boost demand for basic necessities like groceries.
"Singapore and Malaysia's cultures are similar ... Malaysia has a rising population, a lot of natural resources to boost its economy and thus grow consumer spending," said Lim Hock Chee, Sheng Siong's chief executive officer and co-founder said.
Sheng Siong is planning to open its first Malaysian supermarket in Johor, and is currently in discussions to form a joint venture with a listed company in the country, Lim said. It does not plan to compete in the hypermarket space, which is already crowded with larger rivals like Carrefour.
The company, which targets low-to-middle income consumers, is also eyeing revenue growth of about 10 per cent annually, implying it will take market share from rivals NTUC and Dairy Farm International, as it hopes to open about four to six stores a year in Singapore's suburbs. Reuters
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