SPC Group has joined hands with the Malaysian government to grow the stature of Korean baked goods on a worldwide stage. After signing the Halal Incentive called Investment Tax Allowance (ITA) with Malaysia and setting up a production plant in Joho Bahru, we are expanding our base to the global market. Let’s find out more in detail below.
SPC Group Expanding Global Presence of the Brand through Halal ITA Incentive
Malaysian Ambassador to South Korea and Jin-Soo Heo (President of SPC Group) sign the Halal ITA
Since 2012, SPC Group started advancing into the Southeast Asian market as a global, from Vietnam to Singapore, Cambodia, and Indonesia, etc. as a global brand. Especially recently after full-scale advancement into Malaysia and targeting the Halal market. On the 1st of November, a Halal Investment Tax Allowance (ITA) Incentive was signed in the presence of Jin-soo Heo, the president of SPC Group, and H.E Datuk Lim Juay Jin, the Malaysian ambassador to South Korea.
Halal ITA ceremony meeting on the 1st of November 2022
Halal incentive (Investment Tax Allowance for the Production of Halal Food Products) means an incentive for investment tax on halal products. As an investment tax deduction for halal food production, Investment Tax Allowance (ITA) is a special benefit awarded only to Halal certified companies that invest in halal food production through the use of the latest cutting-edge machinery and equipment for high-quality halal food production.
Companies receiving halal incentive receive a 100% investment tax deduction for investments made within 5 years. While general incentives are deductible up to 70%, halal incentives are the most beneficial incentives with 100% tax deduction. SPC Group held an investment meeting and official event during Malaysia’s Minister of International Trade and Industry, Azmin Ali’s visit to Korea in April 2021, followed by the visit of the deputy director of MIDA (Malaysian Investment Development Authority) (October 21st), MIDA’s Seoul Director and Malaysian Ambassador’s visit to our factory (February 2022). SPC Group was finally able to obtain final approval through such activities. SPC Group is the only company from Korea that has received Halal ITA incentive. It can be said that it is an agreement with deeper meaning of solid cooperation for global expansion.
SPC Group’s Full-Fledged Targeting of Halal Market
Jin-soo Heo, president of the SPC Group, reads a commemorative speech at the groundbreaking ceremony of the bakery plant in Johor Bahru, Malaysia
On 20th June 2022, with the start of a halal-accredited bakery plant in Johor Bahru city of Malaysia, the second biggest city in Malaysia, SPC Group concurrently entered a joint partnership with the Malaysian food manufacturing company, Berjaya Food, to make a concrete entry into the Malaysian market.
By using Malaysia as a foundation for advancing into the halal market that encompasses Southeast Asia and the Middle East, SPC Group plans to target Muslim consumers, which account for 24% of the total world population.
Participants at an event at the groundbreaking ceremony of the bakery plant factory in Johor Bahru, Malaysia
On 20th October, SPC Group’s President Jin-soo Heo, participated in the groundbreaking ceremony in Johor Bahru. SPC has invested 30 million dollars for the plant to be built on a land area of 16,500㎡, and a total floor area of 12,900㎡, scheduled to be completed in June 2023. As it can produce about 100 items, including bread, cakes and sauces. It will become a production base to supply products to the global halal market, including countries, where SPC Group has already entered, such as Singapore, Indonesia, Vietnam, Cambodia, and Malaysia, as well as Middle Eastern countries that are scheduled to enter in the future.
SPC Group’s president, Jin-soo Heo said, “With the establishment of the production plant in Malaysia, we will be able to enter the global halal market of 2 trillion dollars, and will be able to expand the global business more enthusiastically”.
SPC Group aims to open its first store in Malaysia’s capital city, Kuala Lumpur, and open 5 shops by the end of 2023; we have plans to open at least 600 stores in the country by 2030.
We will work on developing products that suit the taste of locals by introducing special halal menus, all the while maintaining our original quality and taste. Please keep supporting SPC Group which is introducing the excellency of Korean bakery skills to the world.
