The Malaysian Insight

MORE Chinese restaurants owned by mainland China businessmen are expected to open in Malaysia once the Covid-19 outbreak recedes.

Demand for Chinese food in Malaysia is already huge, with an estimated 1,000 restaurants owned and operated by firms from the mainland, mostly in the Klang Valley, said Kuala Lumpur and Selangor Chinese Restaurant Association president Gao Hao Yun.

The Covid-19 outbreak, which drastically cut the number of Chinese tourists to Malaysia, has temporarily dampened Chinese investments in the food business here, he said.

But once the situation is better, Gao expects the number of Chinese-owned restaurants to increase to 2,000.

“To date, there are about 1,000 Chinese-owned restaurants, most of them in the Klang Valley.

“Once the virus situation improves, within two years, there can easily be 2,000 restaurants,” he told The Malaysian Insight.

Most of the existing restaurants owned by Chinese investors are individually run, with some established as long as 15 years ago.

The boom came in the last four years, Gao said, to reach around 1,000 restaurants.

Gao said there are currently 38 Chinese eateries near Sunway Velocity Mall alone, making the area “like a Chinatown”.

Bigger players are now entering the market, like the relatively new Haidilao, specialising in hot pot, which opened a few outlets.

Another China-based hot pot chain, Banumaodu, has plans to begin operations in Malaysia this year but is facing a setback due to the Covid-19 outbreak.

Some investors also have proposed a “food street of Shenzhen” concept at a mall with around 100 stalls.

“We are still struggling to find the right location for them,” Gao said.

He said the restaurant industry has observed that Malaysians are acquiring the taste for foods from different parts of China, such as Xiangxi, Sichuan and cuisines from the country’s northeast.

He said the growing demand is also a reason enterprising Chinese businessmen have sought to invest in the food and beverage sector in Malaysia.

“In China, the restaurant business has reached saturation point, so bigger players want to go abroad to take their brands international. They will start with neighbouring countries.”

Gan said Malaysia is a top choice for investors for several reasons, such as good bilateral ties, smooth trade, and a local market that speaks Chinese and appreciates the cuisine. 

“Costs are lower, too, in Malaysia, such as rent, and the ease of doing business is attractive, such as easy company registration unlike in some countries which have stricter control.” – February 27, 2020.