SHAH ALAM: Pastry World Sdn Bhd, a supplier of cakes, bread and pastries, is stepping up its regional expansion this year and aiming for a public listing by 2030.
Pastry World managing director Clement Lim said the company already has branches in Hong Kong and Singapore, and will be expanding to Indonesia, Vietnam, the Philippines and Macau this year to meet growing demand.
“We aim to lead the frozen pastry and bakery industry in exports to other countries. During Covid, we set up branches in Hong Kong and Singapore. This year, we’re expanding to Indonesia, Vietnam, the Philippines, and Macau. Our clients want to grow in those regions and need our help. So as they grow, we grow,“ he told SunBiz in an interview.
Lim aims to take Pastry World public in 2028-2030 on the local stock exchange.
Right now, he said, the company is looking for monitoring and evaluation partners and banks to help with compliance and standards.
“We’re exploring which advisers can best support our IPO (initial public offering) journey. At first, listing the company sounded impossible. But after learning about the requirements – the terms, compliance and standards – we now believe it’s possible.”
Lim said he plans to earmark the listing proceeds for further expansion, automation and staff development.
“The IPO proceeds will support factory expansion across new markets. We’ll also use them to attract talent and improve staff benefits. Another big focus is investing in automation and high-tech manufacturing lines,” he said, adding that they are currently operating too many small facilities, and they need to be consolidated.
“By 2027, we plan to shift operations to a larger, centralised, fully automated factory that will be AI- and robot-powered.”
Lim said Pastry World’s current market share in Malaysia’s food and beverage (F&B) distribution space is about 60%. “That leaves 40% room for expansion. I believe there’s still a lot of opportunity.”
He disclosed that the company currently records RM50 million in annual revenue and has seen year-on-year growth of 30%.
“Our internal target is to grow from RM50 million to RM100 million in three years. That’s 30–50% annual growth. It’s aggressive, but we believe we can achieve it through close collaboration between our sales, marketing, and research and development teams, all aligned with customer needs.”
Pastry World operates fully on a business-to-business model with clients including many high-profile names.
“We supply over 800 different variations of frozen bakery products to cafes, restaurants, hotels and F&B chains across Malaysia. Many F&B outlets don’t have enough manpower to produce these items themselves, so they rely on us.”
Lim said the challenge for the industry now is talent as the younger generation is not entering the pastry profession.
“Fewer young people are entering the pastry and baking profession. They’re looking for easier work with better work-life balance. So we face a shortage of skilled professionals. That’s why we want to elevate this industry and make it more attractive for the younger generation. We need to rebuild the talent pipeline for F&B.”
Lim, who comes from a humble family background in Jitra, Kedah, even went overseas and worked illegally in his 20s just to gain industry experience.
“I have been in the industry for almost three decades. Earlier in my career, I worked as an apprentice.”
Lim started Pastry World in 2010 after a previous venture failed and eventually shut down in 2007.
“I lost everything. Pastry World was my restart. Now, it’s been almost 15 years. When I restarted, it was just four of us. Today, we have almost 100 staff.”
He said it has not been easy. During the Covid-19 pandemic, his second business venture nearly closed down due to cash flow issues. “But our employees were very supportive. They volunteered to take a 50% pay cut.”
Lim said everyone pitched in – they helped with sales and did everything they could.
“I was so touched. I realised business is not about one person. It’s about the whole team. That experience changed me.”
Since then, he said, he has made it his mission to do something bigger.
First, for his team, to create a better life for them.
“Second, to support Pastry World’s customers. Because when they grow, we grow. And third, to contribute to society through corporate social responsibility, by training more pastry talent and giving back,” he added.
