Jollibee Foods Corp. is expanding to West Malaysia.
The company said its unit Golden Plate Pte. Ltd. (GPPL) in Singapore has entered into an agreement to form a joint venture company with Beeworks Investment Pte. Ltd. (BIPL), to operate Jollibee stores in West Malaysia which covers the country’s capital, Kuala Lumpur.
BIPL is majority-owned by Patrick Chong, a franchisee for Jollibee East Malaysia which covers Kota Kinabalu and has been a longstanding investor in Malaysia through his company Luxasia Group, an omnichannel leader in luxury beauty and lifestyle brands,Jollibee said.
Under the agreement, the parties will establish a company in Malaysia which will be owned 30 percent by GPPL and 70 percent by BIPL.
GPPL and BIPL will invest an initial $8 million, of which up to $2.4 million will be contributed by Jollibee’s subsidiary “in proportion to its ownership in the business.”
The joint venture will have the exclusive license rights to develop the Jollibee brand in West Malaysia and targets to open at least 120 stores within 10 years, starting 2022.
Jollibee said the creation of the joint venture for Jollibee West Malaysia “will accelerate even more this growth and will help make Southeast Asia a more significant business for the Jollibee group.”
