Kuala lumpur: Malayan Flour Mills Bhd (MFM) has announced a substantial RM100 million capital expenditure plan aimed at enhancing its flour milling business over the course of two financial years, including the current financial year ending December 31, 2026 (FY2026).

According to BERNAMA News Agency, the executive deputy chairman and managing director, Teh Wee Chye, stated that the investment is intended to bolster production capacity, improve operational efficiency, and support the long-term growth of the group's flour milling operations in Malaysia and Vietnam. A significant portion of the investment, approximately RM80 million, will be allocated towards the construction of a new milling line at Vimaflour Ltd in Vietnam. This move is designed to increase production capacity and address the rising regional demand, as the Vietnam operations are currently operating at nearly full capacity.

The remaining RM20 million of the investment will be dedicated to upgrading, automating, and implementing other operational enhancement initiatives across the group's flour milling operations in both Malaysia and Vietnam. Teh Wee Chye highlighted the need for expansion, noting, "The flour mill in North Vietnam is running at full capacity, and therefore we are expanding from 2,000 tonnes per day to 2,500 tonnes per day," during a press conference following MFM's 66th Annual General Meeting.

Additionally, Teh addressed the issue of rising wheat futures prices, attributing the increase to adverse weather conditions in the United States, the West Asia crisis, and escalating fertiliser prices. He emphasised the importance of collaboration between the food industry and the government to navigate these challenges, stating, "Being a food company and classified as a food security company, we have to do our part."

In the realm of poultry integration, MFM recently introduced its first range of halal-certified ready-to-eat microwaveable meals, including Charcoal-Grilled Satay, Ayam Masak Merah, Ayam Kicap, and Ayam Kam Heong. Teh expressed the group's intent to explore new opportunities for expanding into additional product segments and adapting to evolving consumer preferences. He affirmed, "As one of the leading poultry producers in Malaysia, we believe we are well-positioned to leverage our integrated operations and strategic partnership with Tyson Foods to strengthen our presence in the value-added food segment."

MFM also reiterated its commitment to a dividend policy of distributing at least 30 per cent of the group's net profit after tax and minority interests (Patami). For FY2025, the company paid 3.5 sen per share, totaling RM43.4 million to shareholders, equivalent to 31 per cent of Patami of RM139.9 million. This translates into a dividend yield of approximately 6.2 per cent based on the closing share price of RM0.565 as of May 15, 2026.