KUALA LUMPUR (Feb 8) — Plantation company Matang Bhd has moved to strengthen its position in the durian sector by acquiring 10 adjoining agricultural land parcels in Tangkak, Johor, for RM18.2 million in cash.
The purchase is being carried out through its wholly owned subsidiary, Matang Agriculture and Plantation (Segamat) Sdn Bhd, which signed two separate sale and purchase agreements with Ophir Quarry Sdn Bhd and Kwong Ming Mean. The parcels are already planted with durian trees, allowing the group to expand production without starting from greenfield development.
Once the transaction is completed, Matang’s total plantation land bank will rise to about 1,170 hectares, up from roughly 1,150 hectares previously, representing an increase of about 19.6 hectares. The orchards include established varieties such as Musang King, Black Thorn, IOI and Kampung, with trees aged between one and nine years. The surrounding land is largely agricultural, dominated by oil palm estates and other fruit cultivation.
According to the company, the acquisition is expected to contribute positively to future earnings by consolidating output from mature, yield-producing durian trees. The RM18.2 million purchase price is slightly above the independent valuation of RM18 million, reflecting a modest premium of just over 1%.
Funding for the deal will come from internally generated funds together with the balance of proceeds raised from Matang’s 2021 private placement. As of end-September 2025, the group reported cash and short-term funds of RM78.7 million and no borrowings, placing it in a relatively strong financial position to pursue expansion.
At present, Matang operates about 121 hectares of durian plantations across Segamat and Yong Peng, accounting for slightly more than 10% of its overall plantation allocation. Management views durian as a growing revenue contributor, supported by strong demand for premium fruit in export markets, particularly China and neighbouring countries.
Beyond cultivation, the group is also studying downstream activities such as durian paste processing to increase value from future harvests. In addition, Matang is exploring the use of agri-technology and data-driven farming methods to improve efficiency, monitor crop health and enhance yields across both its durian and oil palm estates.
While this investment is focused on agriculture, it reflects a broader trend of land-based assets gaining attention among Malaysian investors. Many market participants who diversify across sectors also track opportunities in industrial land in Selangor, factories in Puchong, and industrial property in the Subang area, as well as commercial property in KL and office space in Bukit Jalil, where demand is driven by logistics, manufacturing, and service-sector growth. The contrast highlights how different land uses—from plantations to industrial parks—can serve distinct but complementary roles in long-term portfolio strategies.
Matang’s shares ended Friday at 7.5 sen, down half a sen on the day, giving the company a market capitalisation of approximately RM179 million. The stock has declined by more than 6% since the start of the year.
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