KUALA LUMPUR : Farm Fresh Berhad has announced that it will not raise the prices of its products despite the upcoming revision and expansion of the Sales and Services Tax (SST) scheduled for implementation on 1 July. The company’s Managing Director, Loi Tuan Ee, confirmed that the SST impact on its core product line is minimal and will not warrant any adjustments in pricing.
Mr Loi stated that only a limited selection of products, such as chocolate milk, will fall within the scope of the revised SST. The majority of Farm Fresh’s offerings, including its flagship fresh milk and dairy beverages, will remain unaffected.
“We expect the impact to be very small. For now, the cost increase is still under control and we have no plans to increase prices,” said Mr Loi, speaking on the sidelines of the International Social Wellbeing Conference (ISWC) 2025, organised by the Employees Provident Fund (EPF).
He noted that Farm Fresh has maintained stable pricing for the past two years and intends to do so for a third consecutive year, underscoring the company’s commitment to affordability and value.
The last price increase occurred during the global supply disruptions triggered by the Russia-Ukraine conflict and foreign exchange volatility, which had a knock-on effect on input costs. Since then, Farm Fresh has taken proactive measures to mitigate such risks, including scaling up production, enhancing operational efficiencies, and optimising logistics.
“We continue to look for ways to sustain our operations, including improving performance at both the farm and production levels to ensure we can maintain prices for consumers,” Mr Loi added.
Addressing broader geopolitical concerns, Mr Loi remarked on the ongoing tensions in West Asia, particularly between Israel and Iran, expressing hope that the situation does not escalate to a point where it disrupts global supply chains. While there is currently no direct impact on Farm Fresh’s operations, the company is closely monitoring developments.
Looking ahead, Farm Fresh remains optimistic about the local dairy sector’s growth prospects. The company is on track to surpass RM1 billion in sales, with confidence bolstered by strong consumer demand, ongoing product innovation, and continued brand loyalty.
“Demand remains strong because our products are daily necessities. Even as consumers tighten spending in other areas, such as dining out, milk remains an essential item — especially for families with young children,” Mr Loi said.
He also revealed plans to diversify the company’s product range by introducing dairy-based offerings tailored for the elderly by next year, in a move to cater to a broader demographic.
“This is part of our strategy to meet the evolving needs of consumers of all ages, not just children and young families, but also seniors,” he concluded.
-Berita Harian
