Delivering Happiness For Generations: Khee San Berhad's Expansion Into International Markets

An Insightful Interview With Mr. Edward JP Tan & Mr. Steven Ng, CEO & Deputy CEO of Khee San Berhad

Brief Company Profile:

Khee San Berhad (KSB) is a Malaysian-based food manufacturing company that was listed on Bursa Securities Malaysia Berhad in 1996. However, the company was in operation before 1996, and has been delivering top quality products, especially candy, in Malaysia and beyond for about 5 decades. KSB’s principal business is the manufacturing of candies and wafer confectionery through its fullyowned subsidiary, Khee Food Industries Sdn Bhd (KSFI). KSFI produces a variety of candies, including chewy, tablet, hard, bubble gum, deposited, and wafers under various brands such as FruitPlus, Torrone, Victory, S’creams, Tip Top, and Lovin.

KSB’s products are distributed locally and internationally in the ASEAN, Greater China, and Middle East regions. KSB’s vision is to become the dominant candy confectionery manufacturer in Malaysia and the ASEAN region, while their mission is to continuously innovate and upgrade the company, its technology, and processes to provide quality and trusted candies for the enjoyment and delight of people worldwide.

Khee San Berhad’s Founding Story:

A Journey of 50 Years: Khee San Berhad (KSB) has been delivering happiness in Malaysia for about half a century despite the fact that it was formally listed as a company in 1996. Prior to 1996, the company operated under different names and gained popularity as customers’ candy of choice. During the five decades long journey as a successful food manufacturing company, particularly in the production of various candy products, it underwent many opportunities and challenges. Overcoming the challenges and utilizing the opportunities rightly and in a timely manner, the company gained extreme popularity among customers and survived this long. Without customers’ love and their demand for candies produced by KSB, it would never be possible to be sustainable and successful in the rapidly evolving industry like the food industry.

Therefore, it could be concluded that Khee San Berhad has quite triumphantly managed to garner customers’ attention and expanded its business beyond Malaysia’s border. While talking to OIC Today, CEO Mr. Edward JP Tan expresses his utmost gratitude to the loyal and long-term customers of KSB products, claiming that “the success of the company for such a long time owes to its customers”. He also asserts the importance of putting the customer first policy and the importance of stressing on customer satisfaction. He says, “I think that many owners of food companies, especially in the confectionery business think wrongly when they start their businesses. They focus on their own vision but the key to success in this sector is to keep the customer happy”. According to his opinion, Khee San Berhad’s main vision is to make the customer happy and as a consequence, the company will see growth in its business. Another important aspect of KSB is that the company makes the product affordable while maintaining its quality so that the customer gratification can be earned at the same time they can afford to buy the product with minimal cost. This is another aspect that makes the company thrive so long and satisfy its customers in a highly competitive market.

Aligning Company’s Vision with a Dedicated Team:

The company’s mission and vision were to bring happiness for customers through selling candy items. With the passage of time, the mission and vision got new heights and now is to grow worldwide, starting with ASEAN countries, in the Middle East as well as in the West. We have a very dedicated team of people who take pride in working in this company. The staffers have a common goal, and it is to make people, particularly children, happy. Everyone in the company has a positive role to play, this is why the management understands and stresses on regular meetings and navigating on the areas where improvements can be brought along to serve the customers better. There is a great combination between the production team and sales team, which creates a very comfortable and united effort in achieving the company’s mission and vision.

While sharing his opinion with OIC Today, the Deputy CEO Mr. Steven Ng lays out the vision of the company to go beyond the Malaysian market and enhance the brand of Malaysia. He says, “the company’s goal is to popularize Malaysian brands globally”. The company has also planned to diversify its business, going beyond candy products. For instance, it took practical measures to bring innovative products to the market to fulfill the demand of an evolving market. Besides, FruitPlus series of candy products, KSB is going to launch vegan products, targeting customers who prefer vegan products and thus meeting their needs. The company will launch the vegan series product in October 2023, targeting unexplored markets like Thailand, China and India where there is a great demand for vegan products.

Standing Out in the Competitive Market:

Despite having thousands of competitors in the candy business, Khee San Berhad stands out quite firmly. Many companies do not produce chewy candies while KSB shares the largest market share in producing and distributing chewy candy products in Malaysia. FruitPlus, for example, is a very popular product, but without innovation and new ideas, it is not possible to sustain in the market. By continuously communicating with the wholesale buyers and customers to hear what they want, the company diversifies and modifies the product. FruitPlus now is available in many flavors including lychee, mango, pineapple, orange and so on. This provides many options to the customers to enjoy candy.

Besides customers, the company closely works with its stakeholders and shareholders. This provides KSB a competitive advantage since the company revises and improvises its product lines based on effective and meaningful suggestions from the shareholders. So, the company is clearly steps ahead of its competitors and dominates the market.

Ensuring Top Quality in Manufacturing and Customer Satisfaction for Decades:

The company’s manufacturing process involves various stages, including ingredient preparation, mixing, shaping, coating, and packaging. KSB sources high-quality ingredients such as sugar, glucose syrup, and flavorings from trusted suppliers, which are then stored in a controlled environment to maintain their quality. These ingredients are then mixed in large tanks to create the candy base, which is heated to a specific temperature and stirred continuously to ensure that the ingredients are evenly distributed. Once the candy base is ready, it is poured into molds to create the desired shape, which are then cooled to harden the candy. Some candies are coated with a layer of sugar to enhance their taste and texture. The candies are then packaged in a clean and hygienic environment to ensure that they remain fresh and safe for consumption.

The production process is closely monitored to ensure that the candies are being manufactured according to the recipe and specifications. KSB conducts regular product testing to ensure that the candies meet their quality standards for taste, texture, and appearance. The company also maintains a clean and hygienic manufacturing environment to prevent contamination and ensure the safety of their products. Additionally, KSB complies with relevant regulations and standards to ensure that their candies are safe and healthy for consumers.

Khee San Berhad (KSB) has maintained a reputation for producing high-quality candy products. To ensure the quality of its products, KSB follows a stringent quality control process that includes raw material inspection, production monitoring, product testing, hygiene, and sanitation. The company sources high-quality ingredients from trusted suppliers and closely monitors the production process to ensure that the candies are manufactured according to the recipe and specifications. Regular product testing is conducted to ensure that the candies meet the company’s quality standards for taste, texture, and appearance. KSB values its customers’ feedback and encourages them to share their experiences with the company. The customers can reach the company through its website or customer service hotline to provide their feedback, comments, or complaints. The company has a dedicated customer service team that is trained to respond to customer inquiries promptly and professionally. KSB values its customers’ feedback and uses it to improve its products and services continually

Dominating Locally and Expanding in ASEAN Countries:

Khee San Berhad (KSB) has been a dominant player in the Malaysian candy market for decades and has established itself as a trusted brand in the region. In recent years, the company has been exploring opportunities to expand its market share beyond Malaysia, including the ASEAN region and the Middle East.

To expand its market share in the ASEAN region, KSB has been focusing on building strategic partnerships with local distributors and retailers. The company has been working closely with these partners to introduce its products to new markets and promote brand awareness. In the Middle East, KSB has been targeting the growing demand for halal-certified products. The company has obtained halal certification from both Malaysia and Indonesia for its products, making them suitable for consumption by Muslim consumers in the region.

Beyond the ASEAN region and the Middle East, KSB has been exploring opportunities to expand its market share in other parts of the world, including Europe and North America. The company has been focusing on developing new product lines and packaging designs to appeal to consumers in these markets. In a nutshell, KSB’s focus on quality and innovation will likely play a significant role in its efforts to expand its market share in the ASEAN region, the Middle East, and beyond.

Impressive Research and Developments (R&D) Activities:

Khee San Berhad (KSB) has been incorporating technology in its production and quality assurance processes to improve efficiency, reduce costs and enhance product quality. The company has ISO: 9001 certification and Halal certification from Malaysia and Indonesia. Therefore, it complies with these certifications. In doing so, the company leverages technology in the best way possible. The plan is to implement several technological solutions, including automated machinery, computerized inventory management, and real-time monitoring systems. These systems help in ensuring that the production process is efficient, and the quality of the products meets the company’s standards. In terms of research and development (R&D), KSB has been focusing on developing innovative product ideas to cater to the changing preferences of consumers. One such recent innovation is the introduction of vegan candy products. The company has identified the growing demand for plant-based products and has introduced a range of vegan candy products. These products are made from natural ingredients, free from animal-derived ingredients and are suitable for consumers who follow a vegan lifestyle. KSB has also been working on improving the nutritional content of its products, developing functional/candy to cater to consumers’ health-conscious needs.

Figure: CEO, Mr. Edward JP Tan

 


“The success of the company for such a long time owes to

its customers” – CEO, Mr. Edward JP Tan


KSB has also been working on developing new product lines, including fruitbased candy products, to appeal to consumers who prefer healthier alternatives to traditional candy products. The company has invested in R&D to develop new flavors, textures and packaging designs to keep up with the changing trends and preferences of consumers. KSB’s investment in R&D and commitment to innovation will likely continue to play a significant role in the company’s success in the candy manufacturing industry.

Quality Production while Ensuring Sustainability and Environmentfriendly Policy:

The company is committed to maintaining environmentally sustainable production processes and reducing its environmental impact, following Govt. of Malaysia’s policy regarding Sustainable Development Goals. It has implemented several measures to ensure that its production processes are environmentally friendly.

Figure:Deputy CEO, Mr. Steven Ng

 


“The company’s goal is to popularize Malaysian brands

globally” – Deputy CEO Mr. Steven Ng


The company has also implemented a waste management system that ensures that waste generated during the production process is properly handled. Secondly, KSB has been focusing on developing sustainable packaging solutions. The company has been exploring alternatives to traditional plastic packaging, including biodegradable and compostable packaging options. The company’s policy includes commitments to reduce greenhouse gas emissions, increase the use of renewable energy, and conserve natural resources. KSB’s sustainability policy guides the company’s actions towards achieving its sustainability goals and ensuring that it maintains an environmentally friendly operation.

Top Quality Manufacturing and Production Teams:

Khee San Berhad maintains a top-quality manufacturing and production team by fostering a healthy working environment that prioritizes the well-being of its employees. The company has implemented several measures to ensure that its staff is well taken care of, and their needs are met. KSB provides regular training and development opportunities to its employees to enhance their skills and knowledge, enabling them to perform their tasks efficiently. The company also offers competitive salaries and benefits packages to ensure that its employees are fairly compensated for their work.

Secondly, KSB fosters a culture of open communication, collaboration, and mutual respect among its employees. The company encourages teamwork and provides a supportive working environment that allows employees to share ideas and perspectives freely. Thirdly, KSB prioritizes employee health and safety. The company provides a safe working environment by implementing safety protocols and guidelines, and providing personal protective equipment to ensure that its employees are protected from workplace hazards. Finally, KSB also offers employee wellness programs that promote a healthy lifestyle, including access to health screenings and mental health support services. These measures ensure that the company’s staff is motivated, engaged, and committed to producing high-quality products.

Overcoming Challenges and Delivering Happiness:

The company has been delivering happiness to its customers through its candy products for over five decades.

It has overcome several challenges to maintain its position as a market leader and ensure that its customers are satisfied with its products. One of the ways KSB overcomes challenges is by prioritizing quality in its production processes. The company uses high-quality ingredients and implements strict quality control measures to ensure that its candy products meet the highest standards. By prioritizing quality, KSB can deliver consistent, highquality products that meet its customers’ expectations.

Another way KSB overcomes challenges is by staying ahead of market trends and consumer preferences. The company invests in research and development to create new and innovative products that appeal to its customers. KSB also pays close attention to consumer feedback and adapts its products and marketing strategies accordingly. The company also builds strong relationships with its suppliers and partners, ensuring that it has a stable supply chain that can meet customer demand. By working closely with its suppliers and partners, KSB can ensure that it has access to the raw materials and resources it needs to produce high-quality products consistently.

Finally, KSB’s commitment to sustainability and ethical business practices helps to build trust and loyalty among its customers. The company’s focus on sustainability and responsible business practices demonstrates its commitment to delivering products that are not only delicious but also produced in an environmentally and socially responsible manner.

Future Prospect:

 In the next 5-10 years, Khee San Berhad aims to expand its market share both domestically and internationally by increasing its production capacity, enhancing its product offerings and entering new markets. The company plans to leverage its expertise in candy production to develop new and innovative products that appeal to a wider audience, including vegan and organic candy products. KSB also plans to invest in new technology and automation to improve efficiency and reduce costs, while maintaining its commitment to sustainability and environmental responsibility. The company aims to continue to build strong relationships with its suppliers and partners, ensuring a stable supply chain that can meet customer demand.

Finally, KSB aims to maintain its position as a market leader in Malaysia and become a recognized brand in the ASEAN region and beyond. The company will continue to prioritize quality, customer satisfaction, and innovation to achieve its growth targets in years and decades to come.

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