Sabah's coffee positioned for global growth

16 October 2024

KOTA KINABALU: Sabah's coffee industry, particularly the renowned Tenom coffee, is on the cusp of international expansion, with renewed focus from Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe.

His recent visit to Tenom coffee producers from October 10-11 underscores the ministry's commitment to elevating the local coffee scene and preparing it for global markets.

During his visit, Phoong toured several key coffee producers, including Yit Foh Coffee Factory Sdn Bhd, Fatt Choi Sdn Bhd, and Tong Fah Coffee Tenom.

He highlighted Tenom's pivotal role in shaping the future of Sabah’s coffee industry, calling it a "cornerstone" of the region's economic and industrial growth.

“Tenom is a place renowned for its coffee, and I firmly believe that Sabah’s coffee industry holds enormous potential,” Phoong remarked.

"Our goal is to help these producers scale up their operations, from increasing production efficiency to upgrading equipment, paving the way for Tenom coffee to enter the global market. This will not only strengthen Sabah’s economy but also create more job opportunities for locals."

The visit forms part of the ministry’s broader strategy to promote local industries and foster industrial growth across the state.

At Yit Foh Coffee Factory, one of Tenom's most recognized names in coffee production, Phoong met with the owner, Alex Yong, to discuss the industry's challenges and potential growth areas.

The ministry is prepared to assist Yit Foh in modernizing its operations, including offering support for equipment upgrades and improved packaging designs.

"My ministry is always ready to help local businesses like Yit Foh Coffee become more competitive in new markets," said Phoong, emphasizing the importance of supporting local brands in their global expansion efforts.

A visit to Fatt Choi Coffee Factory followed, where Phoong reviewed the positive impact of a machine grant provided under the SME-UP program last year.

The grant has enabled Fatt Choi to significantly boost its production capacity, positioning the company for greater success.

“The machine grant has already yielded excellent results for Fatt Choi, enhancing their production line efficiency. We will continue to focus on encouraging coffee cultivation and helping producers upgrade their operations,” he added.

Fatt Choi's owner, Fang Kim Pang, expressed his appreciation for the ministry's continued support in improving their business.

Phoong's final stop was at Tong Fah Coffee Factory, a historic establishment run by third-generation owner James Lee.

During the visit, Lee shared his vision for modernizing the factory while preserving its traditional coffee-making methods that have been passed down through generations.

“Our ministry is committed to supporting Tong Fah Coffee in its modernization efforts, ensuring that this iconic brand continues to grow while retaining its unique heritage,” Phoong said, reaffirming his belief in the bright future of Tenom coffee.

Phoong underscored the importance of strategic collaboration between government agencies and industry players to ensure the long-term success of Sabah’s coffee industry.

He stressed the need for continuous engagement with the Ministry of Agriculture, Fisheries, and Food Industry Sabah, local coffee associations, and other stakeholders to develop a comprehensive plan to encourage more coffee cultivation by local farmers.

“By working together, we can propel Tenom coffee to new heights on the global stage,” said Phoong. “With strategic support for key industries like coffee, we’ll see more exports, job creation, and pride in Sabah’s unique coffee heritage.”

The ministry’s efforts to expand Tenom coffee’s presence in global markets mark a significant step forward in promoting Sabah’s rich coffee legacy.

With the backing of the Ministry of Industrial Development and Entrepreneurship, Tenom coffee is set to make a name for itself internationally, bringing recognition and economic benefits to Sabah.

Accompanying Phoong on his factory visits were several key figures, including Senator Noorita Sual, Datuk Jamawi Jaafar (Chairman of SUDC), Tsen Nyuk Kee (Chinese Community Affairs Advisor to the Minister), Chin Thau Kwong and Grelydia Gillod (Directors of SEDCO), Mohd Ridzuan from MIDE, and representatives from the Department of Industrial Development & Research (DIDR), Juinah Lipat and Ivy Jimli.

Their presence signifies the collective effort of various stakeholders to drive the growth of Sabah’s coffee industry.

With such strategic initiatives in place, the future of Tenom coffee—and Sabah's coffee industry at large—looks exceptionally bright, poised for global recognition and success.