KTL Global’s wholly owned subsidiary Tianci Agritech has tied up with a Taiwan farming co-operative and Taiwan-based logistics company Jinhao Shipping to set up a food-supply logistics network in Southeast Asia, the Singapore-listed company said in a filing to SGX Monday.
The trio will be involved in the procurement, logistics supply chain and distribution of fresh produce and consumer products, mainly from Taiwan, across Southeast Asia, the filing said.
“With air travel curtailed, we will work closely with our Taiwanese partners to bring in Taiwanese food products that are popular among consumers in Singapore and Southeast Asia,” Chin Teck Oon, executive director of KTL, said in the statement.
“Aligned with Singapore’s strategy to diversify our food sources, we aim to further expand our product portfolio and strengthen our supply chain capabilities to better serve our customers in Singapore and expand our business presence across the regional markets as well,” Chin added.
KTL Global noted agriculture is one of Taiwan’s main industries, with around 24 percent of the island’s land used for farming, including for fresh tropical fruits. Singapore, however, has only about 1 percent of its land area available for food production and around 90 percent of its food is imported, the filing noted.
Under the two-year agreement, the Taiwan farming co-op will introduce Taiwanese food suppliers to Tianci Agritech, and will coordinate information with the suppliers, such as inventory lists, prices and quantities, the filing said.
Jinhao Shipping will provide logistics support to ensure continuous supplies of food products at competitive prices, with quality assurances, the filing said. In addition, Jinhao Shipping will handle collection, transportation and customs clearance, the filing said.
Tianci Agritech will make purchases via Jinhao Shipping, and will be responsible for storage, transportation, sales and promotion — both online and offline — of the Taiwanese food products in Singapore and the rest of Southeast Asia, KTL Global said.