Food manufacturer Federal Oat Mills (FOM) Sdn Bhd has unveiled its state-of-the-art facility, worth RM135 million, capable of processing 60,000 metric tonnes of oats annually. The new facility is located at Penang Science Park in Simpang Ampat. Michael Chew Kian Hong, the deputy managing director of FOM, expressed that the launch, originally planned three years ago but delayed due to the Covid-19 pandemic, is a remarkable milestone for the company. Despite the challenges posed by the pandemic, FOM not only survived but also thrived during this period, demonstrating the resilience of their business fundamentals. Michael mentioned that the company has made significant investments in this facility, acknowledging the associated risks, but also embracing the opportunity for growth and improvement (The Star, 2023).
In his speech during the launch ceremony, Michael highlighted the rich history of the company, dating back to 1965 in Penang when his late grandfather, the founder, established various grain milling ventures, including the well-known household brand Captain Oats. Over the past 15 years, FOM has expanded its milling capacity by sevenfold. The new facility, covering a vast expanse of 2.7 hectares, has a milling capacity of 10 metric tonnes per hour, showcasing exceptional efficiency and scale. However, what differentiates this facility is its unique design, surpassing the standards of a conventional factory (The Star, 2023).
Michael emphasized that employee well-being is a priority for FOM, hence the design of employee-centred offices with communal spaces to foster creativity and teamwork. He added that the company heavily invests in research and development to adapt to the ever-changing consumer environment. Furthermore, the new facility has been designed in compliance with the latest food safety standards. FOM’s annual turnover exceeds RM100 million, with 80% of their products being exported to more than 30 countries including China, the United Arab Emirates, Saudi Arabia, Thailand, Cambodia, Laos, and Nigeria (The Star, 2023).
During the launch event, notable attendees included H’ng Mooi Lye, chairman of Penang local government, town and country planning committee; Datuk Wira Arham Abdul Rahman, CEO of the Malaysian Investment Development Authority (Mida); Datuk Seri Lee Kah Choon, director of the Penang Development Corp (PDC); Datuk Loo Lee Lian, CEO of InvestPenang; and Chew Soo Eng, managing director of FOM (The Star, 2023).
H’ng mentioned that FOM ranks as the 13th largest exporter of oat products worldwide. The expansive new facility, spanning over 260,000 square feet across seven floors, specializes in producing a diverse range of oat products such as oat flakes, kiln-dried hulled oats, oat bran, and oat flour. H’ng stated that the expansion of FOM underscores Penang’s attractiveness as an investment destination that facilitates growth (The Star, 2023).
Arham noted that the presence of this fully modern automated facility aligns with the objectives of the New Industrial Master Plan (NIMP 2030), which seeks to transition away from labor-intensive models. Arham added that FOM’s dedication to enhancing technology and capacity benefits local vendors in the supply chain, leading to positive economic spillover effects. Additionally, FOM’s halal-certified oat products have provided access to numerous opportunities in the global Muslim market (The Star, 2023).
Federal Oat Mills, a subsidiary of United Malayan Flour Sdn Bhd, is the sole oat milling plant in Southeast Asia and offers over 120 types of products (The Star, 2023).
Credit: The Star : Metro Feed
