Retail in Asia

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FamilyMart to enter Malaysia ahead of TPP

Japan’s FamilyMart will enter Malaysia through a licensing agreement with local food processor QL Resources in a bid to tighten its grip on the growing Asian market under eased foreign investment rules set by the Trans-Pacific Partnership trade deal.

The convenience store chain aims to open its first Malaysian location in Kuala Lumpur by the end of the year, with plans to launch 300 stores in the country over five years.

The TPP free trade pact, which is not expected to take effect until 2017 at the earliest, will allow Japanese businesses to take a stake of up to 30% in Malaysian convenience store operators. FamilyMart plans to make the maximum allowable investment in the QL subsidiary operating the chain, giving the Japanese company a direct hand in management.

(Source: Asia Nikkei)