KUALA LUMPUR (June 5): Huat Lai Resources Bhd plans to develop the country's largest cage-free egg production facility, set to launch in the fourth quarter of 2025.

The company, which was delisted in 2017, said in a statement on Wednesday that its operations in Malacca will house 200,000 layers in a multi-tier aviary system and is a significant expansion of Huat Lai's cage-free operations, beginning with its Singapore subsidiary Chew’s Agriculture Pte Ltd in 2012.

It added that the new facility will more than quadruple the company's current cage-free capacity of 60,000 hens to create a more affordable and reliable cage-free egg supply chain for local and overseas markets.

In addition, ten of its egg production barns, which together house 200,000 birds, will transition to cage-free systems over the coming months, creating what will be Malaysia's largest cage-free egg operation.

Cage-free hens are given the freedom to move in open environments, which improves animal welfare and food quality.

According to the European Food Safety Authority, cage-free egg farms have up to a twenty-five-time lower rate of contamination by key Salmonella strains, read the statement.

“In the past two to three years we've seen a remarkable shift in corporate demand for cage-free eggs," Huat Lai Group business development manager Edvin Lim said.

“While consumers have long shown interest in animal welfare and sustainable sourcing, the corporate sector — hotels and retailers in particular — have driven the recent surge in demand. Clients now expect 100% cage-free supply once they make the switch, including shell, liquid and powder egg,” he dded.

 The company said that retailers including Mydin, Jaya Grocer, Aeon Malaysia, and hospitality firms such as Sunway Hotels & Resorts, Hatten Hotels, as well as restaurant chains such as Old Town White Coffee have pledged to only use cage-free eggs.

“Huat Lai's evolution from a small family business to becoming Malaysia's pioneer in large-scale cage-free egg production demonstrates remarkable entrepreneurial vision,” the Lever Foundation's sustainable supply chain manager Bagas Kusuma Jati said.

The Lever Foundation is an NGO that works with companies to switch to more humane and sustainable supply chains. It partnered with Huat Lai on its cage-free egg expansion.

He highlighted that making significant infrastructure investments ahead of market demand reflects the courage and forward-thinking leadership needed in the region’s food sector.

The company also cited a survey from GMO Research showing 77% of Malaysian consumers believe eggs sourced by restaurants, retailers and packaged food producers should come from cage-free hens, with 62% of consumers willing to pay more for cage-free eggs.

Huat Lai was officially delisted from Bursa Malaysia and privatised in January 2017.