By: Dr Noraina Mazuin binti Sapuan, Dr Mohamad Reeduan Mustapha, Dr Khairunnisa Abdul Aziz, Dr Norwazli Abdul Wahab
Q1: ROMPINE was founded with a vision to lead the Malaysian pineapple industry. What is the company's core product, and how does ROMPINE’s product quality allow you to compete against larger regional players like Thailand and the Philippines?
Our core business is the cultivation and export of the premium MD2 pineapple variety. The MD2 pineapple is highly sought after because it offers a sweet taste combined with low acidity levels and aromatic qualities. While competitors like Thailand and the Philippines dominate the global market based on economies of scale and processed goods, ROMPINE competes by leveraging its superior product quality, certifications, and sustainable practices. We focus on producing fresh, uniformly sized, and ripe pineapples to meet the market demand.
Q2: ROMPINE has successfully expanded its business beyond fresh pineapples. What role does product diversification play in your overall strategy, and how does it contribute to market resilience?
Product diversification is crucial for our resilience. One way we expanded the business was through the development of processed goods, such as dried pineapple and jackfruit snacks. We also produce fresh-cut pineapple products, pure juices, and other processed items. This expansion serves multiple purposes: it increases our customer base and protects us against the periodic shortage of fresh produce. Furthermore, our processing facilities help in waste reduction by converting fruits that do not qualify for export into usable products. By tapping into the processed food segment, we gain longer shelf lives and broader distribution channels, which protects our interests against seasonal market fluctuations and unpredictable market conditions.
Q3: ROMPINE was appointed by the East Coast Economic Region Development Council (ECERDC) as an anchor company. How does ROMPINE balance its financial goals with its dedication to improving the socioeconomic status of the local community?
Our commitment involves pursuing dual goals: financial success and dedication to improving the economic status of the indigenous Jakun community through employment opportunities and regional economic growth. The Rompin Integrated Pineapple Project (RIPP) has successfully provided jobs for over 300 individuals, including 150 local and indigenous workers. This has been more than just employment; it is a gateway to stability and improved livelihoods. We have specifically improved the living conditions for 88 families in the Jakun indigenous community of Kg Tanam and generated RM1.6 million in dividends for Kooperasi Orang Asli Kg. Tanam during our seven years of operation.
Q4: Entering major international markets like China, Japan, and South Korea requires adherence to rigorous standards. What is ROMPINE’s global footprint, and what specific requirements did you have to fulfill to secure these lucrative export opportunities?
ROMPINE has successfully expanded its export network for fresh MD2 pineapples to over 21 countries across Asia, the Middle East, Europe, and beyond. Our key markets include Japan, South Korea, and China. Our first major international milestone was obtaining permits to export to the Chinese market. To enter and maintain presence in these premium agricultural markets, we must adhere to strict health and safety standards. Targeted export markets like Singapore, Japan, and Korea demand MD2 pineapples that show specific attributes, including consistent sweetness combined with vibrant color and a blemish-free appearance.
Q5: After facing significant financial challenges in 2022 and 2023, what is your projected outlook for ROMPINE, and what major strategic investment is necessary to secure the company’s future growth and competitive edge?
The company faced a turbulent period with a sharp decline in Net Sales Revenue in 2022, and despite revenue increasing in 2023 to RM 17.7 million, we reported a net loss of RM 31.9 million. Nevertheless, I expected a more prosperous year from 2024 onwards, with a projected revenue increment of at least 20% compared to the previous year. To achieve this growth and overcome issues like rising fertilizer, energy, and labor costs, the company must make strategic plans to expand its automation systems and process optimization programs. This requires substantial capital investment, which has led the company to search for new investors to strengthen our financial base and make new business expansion possible.
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