March 3, 2026

Core wheat supply of Malaysia's PPB Group still secure despite ongoing Middle East conflict

Malaysia-based PPB Group Bhd said the group's core wheat supply remains secure despite the escalation of conflict in the Middle East that has triggered massive disruptions in global logistics.

"The Middle East is not a wheat-growing region, so we do not expect a major impact on wheat supply," said group managing director Lim Soon Huat in a post-results press briefing on March 2.

The group sources wheat primarily from Australia, the United States and Canada. Major disruptions will be in freight and logistics costs, but these costs are a relatively smaller component of the group's overall costs, Lim said.

"Given the bumper crop in Argentina and Australia in 2025, we are seeing a more stable grains market, hence we are not concerned about wheat supply or prices," he said. However, he admitted that "short-term volatility" is inevitable as the conflict unfolds.

He said the group is relying on its long-standing risk management practices and diversified sourcing to weather the storm. "It is always our strategy to hedge forward. Given our experience and market intelligence, we are confident that we will be able to deal with the volatility in the grains market stock position and able to withstand short-term shocks."

PPB expects its core businesses — particularly grains and agribusiness, as well as film exhibition — to maintain the momentum seen in 2025. "We have seen a strong performance in 2025. We expect to ride on the momentum and continue to strengthen our core businesses," he said.

As for currency, Lim said a firmer ringgit would be a significant advantage for the group. "We expect the ringgit to perform relatively well and continue to stay strong despite the strength of the US dollar amid the heightened tension in the Middle East," he said, adding that "a stronger ringgit is good for importers like us".

Its grains and agribusiness arm, FFM Berhad, owns and operates five flour mills in Malaysia and two in Vietnam. Additionally, it has a presence in Thailand through a 43.4% stake associate, and in China via seven associates, in which it owns a 20% stake each.

- The Edge Malaysia