Malaysia-based Loob Holding launched a new tapioca pearl plant in Selangor, Malaysia with Chinese partners to export to Southeast Asia and attract foreign direct investment
Loob Holding, which owns the bubble tea chain Tealive, has opened a new tapioca pearl production facility in Selangor, Malaysia. The $2.13 million plant spans one acre and has a maximum production capacity of 400 tonnes per month, positioning it amongst the most extensive pearl facilities currently operating in the country.
According to Loob Holding founder Bryan Loo, the company’s decision to expand into upstream production aligns with its strategy of controlling quality across the entire supply chain.
“Exporting pearls allows us to tap into the demand in other countries. It is about meeting current demand and strategically positioning ourselves for continued growth and regional expansion,” said Loo.
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The pearl plant is the result of a joint venture between Loob Holding and two Chinese firms, Zhejiang Boduo International Trade Co. Ltd and Shanghai Panfei International Trade Co. Ltd. Loo highlighted that the partnership represents increasing foreign direct investment into Malaysia's food and beverage sector; which he hopes will continue attracting overseas expertise and collaboration.
“The initial step involves the production of tapioca pearls, but our vision extends beyond that. We foresee attracting FDI in fruit syrup, toppings, tea leaves and other bubble tea ingredients,” he added.
The new facility will solely produce pearls to supply Loob Holding’s operated stores, including the Tealive chain, with more than 950 outlets across Malaysia. But export plans are underway, with the Philippines market in the line of sight owing to solid demand from the region.
By handling its own pearl production, Loob Holding states it can better react to changing market conditions and consumer preferences. The move aligns with previously announced strategic plans of positioning Malaysia as the region's leading hub for bubble tea ingredients. “We aim to enhance operations and grow the bubble tea industry in Malaysia through collaboration with our Chinese partner. This expands investment opportunities and positions Malaysia as an attractive destination for foreign investors,” said Loo.
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