KUALA LUMPUR (June 10): Penang-based tourism and property development outfit Iconic Worldwide Bhd (formerly known as Sanbumi Holdings Bhd) is venturing into face mask manufacturing, initially targeting factory and construction companies in Malaysia.
In a statement today, Iconic Worldwide said its new business venture will be placed under its fully-owned subsidiary Iconic Medicare Sdn Bhd.
"Currently, the manufacturing facility located at Juru, Penang is capable of producing face masks at a rate of 100pcs/min, amounting to approximately two to three million face masks a month.
"There are plans to increase production to five million face masks a month by the third quarter of 2020, as orders have already been fully taken up until July," it said.
Iconic Worldwide managing director Datuk Tan Keat Tet said: "We saw a need to locally produce face masks as a large part of Malaysia's supply is still from China.
"As Recovery Movement Control Order is implemented, we foresee people will be more willing to leave their homes. Consumption of face masks is expected to increase and we are confident of matching the demand with a reliable supply," he said.
Furthermore, he said that producing them locally can give customers assurance on the origin of the product and the high-quality materials that go into making the face masks.
He added that the company has been actively donating face masks especially to front liners during the Movement Control Order, but realised that there were problems with sourcing face masks from China such as time delays and quality assurance.
Therefore, the company said it has decided to take it upon themselves to supply the local market with a reliable product.
"We are in the process of getting ISO and CE endorsements, with which we will look towards exporting medical-grade masks emblazoned with a 'Made in Malaysia' symbol.
"For now, we shall kick-start this venture from the northern region of Malaysia, as we gradually move down to other parts of the country," he said.
Iconic Worldwide added that this is its first baby step into diversifying into the manufacturing segment, as the company sees a need to adapt to the new normal of venturing into new and relevant businesses.
"The face mask business will start to contribute to the company's financial year ending March 31, 2021 and also help cushion the slight impact on its property and hospitality business, which has been affected by Covid-19.
"For [financial year 2021], property development will continue to be the main driver of the company, supported by its hotel segment and followed closely by its new manufacturing segment," it said.
At the midday break today, Iconic Worldwide rose 1.82% or 0.5 sen to 28 sen with 2.18 million shares traded.