Sik Cheong Mitigating Soybean Oil Fluctuation Risks: Insights from TA Securities' Abdul Muiz Mustafa

Kuala Lumpur, Malaysia – During a recent discussion, Abdul Muiz Mustafa, Senior Manager of Corporate Finance at TA Securities, addressed concerns about the risk exposure to soybean oil price fluctuations for Sik Cheong Bhd. He clarified that Sik Cheong does not import raw soybeans but rather purchases refined soybean oil from Malaysian refineries. This strategy shifts the risk of price volatility to the refineries at the midstream level, ensuring that Sik Cheong’s operations, which focus on the downstream repackaging of soybean and palm oil, remain stable.

By relying on local refineries for their soybean oil supply, Sik Cheong mitigates the impact of international market fluctuations, allowing the company to focus on its core business of repackaging and distribution.

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