KOTA TINGGI: Kluang Coffee Powder Factory Sdn Bhd, one of Malaysia’s heritage coffee brands, is projecting a 5% revenue growth to RM31.5 million in 2025, up from RM30 million last year. The company attributes its upward trajectory to sustained demand across both physical retail and online channels.
General manager and third-generation owner Goh Yong Kian, 36, said the Johor-based company currently supplies to more than 100 coffee shops across Malaysia and Singapore. Its flagship brand, Kluang Coffee Cap Television, is a familiar presence in commercial outlets and supermarkets nationwide.
Founded in 1966 by Goh’s grandfather, Goh Tong Tor, the factory now produces over 1,500 tonnes of coffee powder annually, sourcing beans primarily from Brazil, Indonesia and Vietnam. The company also exports 10 containers of its products annually to ASEAN markets including Singapore and Brunei.
Speaking at an exhibition in conjunction with the 31st ASEAN Economic Ministers (AEM) Retreat in Desaru, Goh revealed plans to scale up operations with a new, fully automated facility.
“We’ve acquired a one-acre plot and plan to open a new factory next year. Automation will help reduce labour costs and improve our profit margins,” he said.
While Goh is optimistic about the coffee industry’s growth in Malaysia, driven by surging consumer demand, he remains cautious about global supply chain volatility.
“We’re seeing increasing competition as more manufacturers enter the market, which pushes quality standards higher. That’s a good thing—but rising global coffee prices, particularly due to shortages in Brazil and Vietnam, are a challenge.”
Arabica coffee prices have surged to over US$3.60 per pound in recent months, prompting manufacturers like Kluang Coffee to absorb higher input costs rather than passing them fully onto consumers.
“We’re trying to maintain stable prices for our customers, which means accepting slimmer margins—for now,” Goh said. “Hopefully, prices will stabilise by year-end, allowing us to protect both our profitability and customer loyalty.”
The AEM Retreat, chaired by Malaysia’s Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz, runs from Feb 22–28. As ASEAN Chair for 2025, Malaysia is focusing on enhancing intra-regional trade and expanding economic cooperation beyond Southeast Asia.
