KUCHING: July 13, 2026 – Kim Teck Cheong Consolidated Berhad (KTC), a company listed on Bursa Malaysia’s Main Market, has signed a strategic memorandum of understanding (MoU) with Sanjung Etika Sdn Bhd and the Sarawak state government to establish a joint-venture bread manufacturing plant in Sarawak.
Seated from left to right: Executive Director of KTC, Datuk Dexter Lau; Managing Director of KTC, Datuk Lau Kok Sing; Board Member of Saujana Etika Sdn Bhd, Datu Haji Dr. Hatta Bin Solhi; and Board Member of Saujana Etika Sdn Bhd, Jolly Bin Marikan.
The MoU signing ceremony was witnessed by Sarawak Deputy Premier III, Minister of Public Health, Housing, and Local Government Sarawak, Datuk Amar Dr. Sim Kui Hian. According to the agreement, KTC will invest RM30 million as a joint shareholder in the venture.
The agreement, inked through KTC’s subsidiary, Gardenia, will establish Gardenia Bakeries (Sarawak) Sdn Bhd as the joint-venture entity, combining Gardenia’s manufacturing expertise with the human capital and community development initiatives of Yayasan Sarawak.
As part of the project plan, KTC has submitted an application to the state government to acquire a 7.56-acre plot of land at the Kota Samarahan Industrial Park to enable the construction of the factory, which is targeted to be fully operational by 2027.
KTC Executive Director, Datuk Dexter Lau, stated that this project is not just a business agreement, but represents a new leap forward for the food industry, economy, and social development in Sarawak.
The factory is expected to create up to 500 job opportunities, with priority given to local graduates and skilled talents.
He informed that during the initial phase of operations, the factory will employ approximately 100 local workers, with the number gradually increasing to 500 in line with rising production capacity.
“Ten years ago, KTC started investing in Sarawak with zero employees. Today, we are proud to employ 400 local Sarawakians, which represents 32.5% of KTC’s total workforce nationwide.
“This proves the efficiency of Sarawak’s administration, education system, and social welfare in producing top-tier talents that are highly competitive for the private sector,” said Dexter.
KTC’s total investment in Sarawak now stands at RM300 million, generating an annual return of RM400 million, with operating and trading assets valued at RM140 million.
Beyond job creation, this collaboration also introduces new exclusive products, namely the ‘Sarawak Edition’ for Gardenia bread, which will be packaged with designs reflecting the state’s unique heritage and culture. Planned products include Gardenia Layer Cake, which will only be sold exclusively in Sarawak.
The company is also committed to sourcing raw materials from local Sarawak suppliers as much as possible, to ensure economic value remains within the state.
He explained that the factory will initially produce approximately 6,000 loaves of bread per day, and this capacity will be increased to between 10,000 and 20,000 loaves per day to meet demand across Sarawak.
KTC also expressed support for the long-term economic vision of the Sarawak Premier, particularly following the announcement of the establishment of the Sarawak Trade and Tourism Office (STATOS) in Pontianak, Indonesia. The company plans to use Sarawak as an operational hub to explore cross-border investment opportunities.
Both parties are expected to finalize the joint-venture agreement and shareholders’ agreement within the next three months before commencing operations.
Earlier, representing Sanjung Etika Sdn. Bhd., Yayasan Sarawak Director Datu Mohamad Junaidi Mohidin stated that every investment made today is also an investment in Sarawak’s future.
“This collaboration with Kim Teck Cheong Consolidated Berhad is a manifestation of that intention. By combining our respective strengths and expertise, we aspire to establish a modern, competitive, and halal-certified bakery manufacturing enterprise,” he said.
Junaidi added that aside from commercial objectives, this collaboration is also expected to act as a catalyst for talent development through industrial training programs, knowledge exchange, and skills enhancement.
“This not only supports Yayasan Sarawak’s educational mission but also strengthens Sarawak’s industrial ecosystem and contributes to a more prosperous, resilient, and sustainable future for the state,” he added.
Meanwhile, Datuk Amar Dr. Sim Kui Hian said in a press conference that this investment is proof that investor confidence in Sarawak’s long-term economic potential is growing stronger.
“Investors choose Sarawak not only because of competitive electricity tariffs but also due to the quality of the workforce and a conducive living environment,” he said.
He also reminded that the establishment of this factory meets a strategic need, not merely chasing maximum profits.
“Previously, many Sarawakians bought Gardenia bread at KLIA before boarding their flights home. Now, with this factory, more locals can enjoy Gardenia bread without having to rely on external supplies,” he said.
From right: Board Member of Sanjug Etika Sdn. Bhd. (SESB), Jolly bin Marikan; SESB Board Member, Datu Haji Sepuan bin Haji Anu; SESB Board Member, Datu Haji Dr. Hatta bin Solhi; Chairman of Kim Teck Cheong Consolidated Bhd (KTC), Tan Sri Datuk Amar Mohd Zuki bin Ali; Deputy Premier III of Sarawak, Minister of Public Health, Housing and Local Government Sarawak, Datuk Amar Dr. Sim Kui Hian; Managing Director of Kim Teck Cheong Consolidated Berhad, Datuk Lau Kok Sing; Assistant Minister of Local Government and Housing of Sabah, Datuk Fairus bin Renddan; Executive Director of KTC, Datuk Dexter Lau; and Mayor of Kuching South City Council (MBKS), Dato Wee Hong Seng.
