KUALA LUMPUR, June 18 (Bernama) -- Bursa Malaysia’s key index finished marginally higher, supported by strong buying interest in consumer-related counters, amid mixed performance across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 1.40 points, or 0.08 per cent, to 1,711.39 from Tuesday's close of 1,709.99. The key index opened 12.36 points firmer at 1,722.35 and moved between 1,711.31 and 1,722.63 throughout the session. Market breadth was negative, with losers leading gainers 678 to 493, while 549 counters were unchanged, 1,016 untraded and 34 suspended. Turnover increased to 4.50 billion units worth RM3.45 billion from 3.93 billion units worth RM3.45 billion on Tuesday.
Poultry producer CAB Cakaran Corp Bhd (KL:CAB) expects to book its first earnings from Indonesia as early as next year, as its long-awaited joint venture with Indonesia’s Salim Group finally gains momentum.
Managing director Chris Chuah said the venture — delayed for nearly a decade due to Covid-19 disruptions and political changes — is now on track, with plans to convert one of Salim’s existing factories to process halal poultry products.
“Without having to build a new facility, production could start within months,” Chuah told The Edge. “We also don’t have a demand issue — Salim Group will handle that.”
Fast Start, Low Capex
Under the first phase of the five-year plan, the partners will invest US$10 million (RM45 million), with operations slated to begin by 2Q 2026.
Salim Group — Indonesia’s largest conglomerate and owner of Indomaret’s 23,000-store network — will hold 70%, while CAB Cakaran retains 30%.
The collaboration gives CAB a strategic entry into Indonesia’s vast consumer market, while keeping capital expenditure low and accelerating returns.
“This structure allows CAB to achieve faster payback in its initial phase,” said UOB KayHian’s Vincent Khoo, who estimated the venture could add RM25 million annually to CAB’s bottom line.
Salim’s Retail Reach, CAB’s Halal Expertise
The Salim Group, best known for Indofood Sukses Makmur, the global producer of Indomie instant noodles, holds a 15.2% stake in CAB Cakaran but has no poultry operations of its own.
By leveraging Salim’s nationwide distribution channels and CAB’s halal-certified poultry expertise, the partnership positions both companies to tap Indonesia’s growing demand for affordable, high-quality halal protein.
Bottom Line
After years of setbacks, CAB Cakaran’s Indonesian expansion is finally taking flight — with the potential to transform the company into a regional halal poultry player and deliver a new earnings stream as early as 2026.
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