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Malaysia-based Pensonic chalks out expansion plans for Cambodia

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The sprawling Pensonic factory based in Penang, Malaysia. Photo supplied

Malaysia-based Pensonic chalks out expansion plans for Cambodia

Malaysia-made home appliances manufacturer, Pensonic Holdings Bhd is in an expansion mode this year. The company targets to expand to at least five provinces after observing a strong demand is emerging for small domestic electrical appliances in Cambodian homes.

After launching its business in Phnom Penh more than a year ago, Pensonic is now eyeing Battambang, Kampung Speu,Kampung Cham and Siem Reapto push its products.

“Our focus for 2019 is to stabilise our business and grow our base. We want to reach out to other provinces as we are pretty much focused in Phnom Penh now. We want to expand to four or five provinces by Q2 and Q3 (by June or September)."

“There is a big population in these provinces and they have the buying power. In other provinces we will either set up our own operations or team up with local wholesalers,” Lim Eu Jin, Sales Manager of Pensonic (Cambodia) Co. Ltd told The Post.

The founder, Dato’ Seri Chew Weng Khak, transformed Keat Radio and Electrical Co, which started as a retailer and workshop in Penang in 1965, into a market leader in electrical home appliances in Malaysia.

Its core businesses include manufacturing, importing, exporting, distribution and marketing electrical home appliances for the domestic and international markets.

The factory in Penang produces and distributes an array of electrical home products, from kitchen appliances, washing machines, air conditioners, audio visual, refrigerators to lighting, and its products are shipped out to some 30 countries across the globe.

In Cambodia, its fast selling items are rice cookers, electric blenders, microwave ovens, gas cookers, kettle jugs and ovens.

“There is a rising demand for home appliances mainly due to rising per capita income as a result of growing GDP [gross domestic product]and rapid urbanisation. Cambodians value brands and people know about quality products, and made in Malaysia products are in high demand,” said Lim.

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Rising income is driving the demand for consumer goods in Cambodia. Photo supplied

“Increasing number[s] of Cambodia’s urban residents are willing to pay for quality products and Cambodia’s emerging middle class also demand for higher level of comfort and convenience,” he added.

Internal factors such as a rise in domestic consumption, urban lifestyle, availability of micro financing schemes and low household penetration of appliances would push the demand for small home appliances.

The entry of international shopping giants like Japanese Aeon Mall and Makro, another global chain, is a clear indication that the demand for consumer products in the Kingdom will continue to grow significantly.

While other factors – Cambodia’s strategic location, reduction in tariffs among Asean countries and entry of global home appliances producers will spur demand, especially among the rising middle class with better disposable income.

According to the World Bank, Cambodia’s per capita income shot up to $1,384 in 2017 from merely about $785 in 2010 due to steadfast economic growth, mainly driven by garment and tourism sectors.

“We are optimistic of the market. There is a gap between the middle level brands and the premium brands, certainly there is a market for companies like Pensonic to explore. We need to convince premium buyers to buy middle range products,” added Lim.

Content image - Phnom Penh Post
A Pensonic showroom located in Penang. Photo supplied

Content image - Phnom Penh Post
Pensonic products now compete with top global brands around the world. Photo supplied


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