[Exclusive] "Eight Years After Complete Withdrawal, Comeback"... Korean Bakery Paradise Heads to Conquer Malaysia

Tous Les Jours to Open First Store in Malaysia Next Month
Reentering the Malaysian Market After 8 Years
Plans to Open 5 Stores by Year-End, Leveraging Growth Experience in Indonesia
Paris Baguette Utilizes Malaysian Bakery Plant
Malaysian Bakery Market Expected to Grow at an Average Annual Rate of 5.2%

Tous Les Jours, operated by CJ Foodville, is making a "comeback" in Malaysia. Tous Les Jours plans to open its first store at a major shopping mall in Subang Jaya, a metropolitan city near Kuala Lumpur, the capital of Malaysia, next month. Drawing on its growth experience in neighboring Indonesia, as well as its logistics and halal certification, the company aims to open a total of five stores in Malaysia by the end of the year. A head-to-head competition with Paris Baguette, which is already established in the local market, is expected. As the Malaysian bakery market is projected to grow at an average annual rate of 5.19%, further investment from Korean bakery companies is anticipated.

According to industry sources on the 22nd, Tous Les Jours is scheduled to open its first Malaysian store at Sunway Pyramid Mall next month.

This year, Tous Les Jours selected Malaysia as its first overseas business destination and signed a master franchise (MF) agreement with local company Stream Empire Holdings. Stream Empire Holdings operates more than 200 diverse stores, including food and beverage (F&B), convenience stores, and fashion retail, across major Southeast Asian countries including Malaysia.

The company plans to open five stores in Malaysia this year to recover from past underperformance. In addition to the first store, additional locations are expected to open at Sunway Velocity Mall, Kuala Lumpur Convention Centre (KLCC), and Oxley Tower.

Previously, Tous Les Jours entered the Malaysian market in 2011 through a master franchise arrangement and operated up to five stores, but closed all operations in 2017 after six years. At that time, CJ Foodville explained, "There were financial issues with the local partner company."

Tous Les Jours plans to leverage its expansion in Indonesia to strengthen its brand presence in Malaysia and increase its influence in the rapidly growing halal market. After entering Indonesia in 2011, Tous Les Jours established a production plant in the Bekasi region in 2019 and became the first Korean bakery brand to obtain halal certification in Indonesia. Currently, the company operates more than 70 stores in Indonesia.

Paris Baguette, operated by SPC, is also focusing on expanding its market presence by fully utilizing its recently established Malaysian factory. In February, the company completed the construction of a bakery plant at Nusajaya Tech Park in Johor, Malaysia. This plant produces products for Paris Baguette stores across Malaysia. There are currently 14 Paris Baguette stores in Malaysia.

The plant can produce up to 300,000 bakery products per day (up to 100 million annually) through seven production lines. An SPC representative explained, "Although there are seven production lines at the plant, the lines are currently operated according to the factory schedule and production volume," adding, "The plant is operating as originally planned and is supplying products throughout Southeast Asia."

The reason the Korean bakery industry is focusing on Malaysia is the market's growth potential. Malaysia is a symbolic economic powerhouse in ASEAN (Association of Southeast Asian Nations) and a representative halal market where Islam is the state religion, and the bakery market has been steadily growing.

According to the Korea Agro-Fisheries & Food Trade Corporation's agri-food export information (KATI), the Malaysian bakery market was valued at 13.82 billion ringgit (approximately 4.4 trillion won) in 2023. The market is expected to grow at an average annual rate of 5.2% from last year through 2028.

The halal market is also considered a rapidly growing, massive market alongside the increase in the global Muslim population. According to the industry, the halal market is estimated at about $2.5 trillion (approximately 3,600 trillion won) and is growing by 20% each year. The global Muslim population is about 1.8 billion, which is about 1.6 times the size of the Chinese food market.

An industry official said, "The image of Korean bakery companies in the Southeast Asian market is very positive," adding, "In particular, Malaysia is a market to watch as interest in K-food is rising alongside the popularity of K-culture."