KEPONG (Dec 21): Box-Pak (M) Bhd is expecting the operations from its Myanmar expansion to give a "meaningful" contribution to the group's bottom line in five years' time.

Speaking to reporters after its extraordinary general meeting (EGM) today, group chief financial officer Ooi Teik Huat said, "Based on the group's experience in Vietnam, it will probably take four to five years for it to contribute meaningfully to the bottom line of the group."

"Myanmar is opening up and we [see that] Myanmar is similar to Vietnam 15 years ago. Our Vietnam business is now contributing about 80% of the [group's earnings]," he said.

Ooi also sees opportunities in Myanmar as there are not many key players and the group can bank on its existing customers in Malaysia and Vietnam.

"Myanmar is opening up their economy and their country. There are a lot of special economic zones and industrial zones also being set up.

"There are customers of Box-Pak and Kian Joo Can Factory Bhd planning to open up factories there too," he added.

It was previously announced that the group plans to increase the capacity of its manufacturing plant that is under construction in Myanmar by about 36,000 tonnes per annum.

At the EGM today, shareholders have approved Box-Pak's plans to undertake a rights issue with free detachable warrants to raise funds to expand its business in Malaysia and Myanmar, besides repaying short-term loans and to increase its working capital.