It is no doubt that Malaysia is transforming from export-oriented to domestic-demand-oriented economy. However, we have seen no improvement has been made although there are a lot of plans came out. It takes times and Malaysia needs a whole restructuring reformation to ensure the transformation is going to happen.
Manufacturing is still the core of the Malaysia economy. We have many successful manufacturing firms which we should be concerned about such as Kian Joo---the can and tin makers.
For those who has never heard about it, you should take note that Kian Joo is one of the most successful can&tin maker in Malaysia. Other than that, it also involves in packaging business although it is just a smart portion of company's revenue.
Before 1999, the company had grown steadily and maintained net profit of RM50 million above but it came to turn down after 1999 when the company's net profit dropped to about RM 33 million although the revenue increased.
Improvement was seen started at 2002, the company's net profit grew again steadily and achieved RM 50 million again in 2005 but fell again in 2006. It is due to the increasing raw materials costs and some of the associated companies faced losses during the year.
The company's net profit fluctuated after 2006 and currently it has about RM 104.04 million net profit.
We can see that this company is sensitive with raw materials prices. Although it has very huge volume production line and serves for various famous companies like Nestle and F&N, the net profit margin is low. It means that the company needs to control costs strictly in order to avoid losses.
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