A Groundbreaking with Strategic Implications
On 10 August 2026, in the industrial town of Kamunting, Perak, a groundbreaking ceremony took place that carries significance far beyond the construction site. Sheng Long Aqua Technology (M) Sdn Bhd, a subsidiary of China-based Guangdong Haid Group Co., commenced construction on its first aquaculture feed manufacturing facility in Malaysia—a project representing a first-phase investment of approximately RM140 million.
The timing and scale of this investment are telling. Malaysia’s food manufacturing sector attracted RM3.3 billion in approved investments during the first quarter of 2026 alone, making it one of the country’s strongest-performing manufacturing segments. The Sheng Long project is not an isolated phenomenon but part of a broader influx of capital into Malaysia’s agri-food ecosystem, drawn by the nation’s strategic location, growing domestic demand, and supportive investment policies.
The Feed Deficit Problem
To understand why this facility matters, it is necessary to confront an uncomfortable reality in Malaysia’s aquaculture industry: the sector’s growth has been constrained by an over-reliance on imported aquafeed. This dependency exposes Malaysian aquaculture operators to global price volatility, supply chain disruptions, and the vagaries of international trade policy. As MIDA CEO Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid noted, the Sheng Long investment is directly aimed at “reducing our reliance on imported feed, and directly reinforcing national food security and supply chain resilience”.
The new facility will be equipped with two shrimp feed production lines and two fish feed production lines, with a combined annual production capacity of 150,000 metric tonnes. This capacity is calibrated to meet growing demand in Malaysia and neighbouring markets, positioning the facility as not merely a domestic supplier but a regional export platform. The project is expected to create more than 100 employment opportunities and strengthen local manufacturing capabilities.
Localisation and Technology Transfer
The Sheng Long investment is structured not as a simple capital injection but as a long-term commitment that includes technology transfer and local workforce development. Guangdong Haid Group brings substantial expertise in aquafeed formulation and manufacturing—capabilities that are being deployed in Malaysia for the first time. The establishment of local manufacturing also creates opportunities for knowledge transfer to Malaysian employees, suppliers, and industry partners.
Perak State Executive Council Member Teh Kok Lim framed the investment as a vote of confidence in the state’s ability to support long-term industrial growth: “Seng Long’s commitment to invest in Taiping demonstrates confidence not only in the company’s own growth prospects, but also in Perak’s ability to support that growth over the long term”.
The Broader Aquaculture Investment Wave
The Sheng Long facility is the most visible manifestation of a broader investment wave in Malaysia’s aquaculture sector. The Department of Fisheries Malaysia reported that domestic aquaculture production exceeded 500,000 metric tonnes in 2023, valued at approximately US$1 billion. With continued growth expected, the demand for aquafeed will rise proportionally.
The project’s strategic alignment with national policy objectives is explicit. The National Agrofood Policy 2.0 identifies aquaculture as a priority sector for achieving food security and rural income growth. By domesticating feed production, the Sheng Long facility addresses one of the most significant bottlenecks in the aquaculture value chain—the cost and availability of nutritionally complete feed. When feed constitutes 60 to 70 per cent of aquaculture production costs, localisation of feed manufacturing has direct implications for farm profitability and consumer prices.
What Comes Next
Scheduled to commence operations in 2028, the Sheng Long facility will take approximately two years to move from groundbreaking to production. During this period, the company will construct the plant, install production equipment, train staff, establish supplier relationships, and secure regulatory approvals. The facility’s success will be measured not only in tonnes of feed produced but in its contribution to the competitiveness of Malaysian aquaculture.
The investment also raises the question of whether other international feed manufacturers will follow Sheng Long’s lead. The Malaysian market’s growth trajectory, combined with attractive investment incentives and strategic location, suggests that further foreign direct investment in aquafeed manufacturing is likely. If that materialises, Malaysia could emerge as a regional hub for aquafeed production—supplying not only domestic farms but also the rapidly expanding aquaculture sectors of neighbouring countries.