Chinese funds fuelling boom in Malaysia's durian plantations

KUALA LUMPUR — As demand for musang king durians grows in China, an increasing number of wealthy Chinese are competing to invest in durian plantations in Malaysia.

In the last five to six years, Chinese businesses have expressed interest buying a stake in Malaysian durian plantations, joining a steady stream of hopeful investors from Hong Kong and Singapore.

As foreigners are not allowed to buy land, investors are looking to partner with local businessmen in setting up plantations and frozen durian-processing centres.

Malaysia has been freezing durians and exporting them to China from as early as 2011 but since 2013, Chinese businesses have also begun investing in local durian plantations so they can control the export of durians themselves.

Chinese businessman Li Ming had anticipated as far back as six years ago that the musang king durian would be big in China, prompting him to come to Malaysia to look for a partner and also to buy over some plantations.

“Six years ago, the investments in durian plantations were not as high as it is today. I brought more than RM600,000 (S$197,162) and started a durian plantation business to export to China because Malaysian durians taste better than Thai durians, and the China market is crazy about the durians,” Mr Li said.

Many Chinese businessmen are also investing in Malaysian durian plantations as this will ensure a steady export supply, he said.

Meanwhile, Hong Kong businessman Adrian Choy said he partnered up with a local businessman and invested RM3 million in a 80ha durian plantation, with the local partner mostly in charge of managing the plantations.

Mr Choy is also one of the founders of durian exporting company Durian BB, which is now doing business in Malaysia, Singapore, Hong Kong, Macau and China.

He said the durian business is a risky one as it is a seasonal fruit and profits depend on the harvest season, hence the need to have local partners manage the plantations.

Mr Choy said his durian business not only has to ensure a steady supply for the Hong Kong market, it also has to meet the demand in Macau, Canada, Singapore and the larger Chinese market.

Out of China’s 1.3 billion population, it is likely only 5 per cent have heard of durians and only 1 per cent have ever tasted the fruit, he said.

Hong Kong folk may be more familiar with the durian, he said, as many enjoyed holidaying in Malaysia.

“Our business partners love durians. That’s why we decided to invest in the market. Durians are something Asians commonly eat, and we think investing in plantations will have long-term benefits,” Mr Choy said. THE MALAYSIAN INSIGHT