LOKA Malaysia To Invest US$617,756 For Regional Expansion

KUALA LUMPUR, March 17 (Bernama) -- Retail concept store LOKA Malaysia will invest US$617,756 (RM2.5 million) within two to three years for expansion in Malaysia and ASEAN as well as to promote 500 local brands under its stable. (US$1=RM4.04) Its Director Sharizal Shaarani said the company is currently negotiating with several potential partners in Malaysia and ASEAN for its expansion exercise. "It is always about opportunities and the right terms. Right now, we are looking at Indonesia and Thailand to expand LOKA in both countries," he told reporters at the launch of the LOKA Malaysia flagship store by Finance Ministry Secretary-General Dr Mohd Irwan Serigar Abdullah here Thursday. To date, the company has invested US$370,661 (RM1.5 million) for it flagship store and marketing exercise. Sharizal said the company wanted to create a space that would be conducive for local brands with high potential to break into the mainstream market. The 7,300 sq. ft. (678.2 sq. m.) store, which opened on Dec 23, 2015, houses 40 Malaysian lifestyle brands including Pestle & Mortar, Ash Be Nimble and Tarik Jeans. "The response has been good. This is the first time we have all Malaysian lifestyle brands under one roof," said Sharizal. LOKA Malaysia is owned by Gemilang 4E Sdn Bhd, an entrepreneurship development agency established in 2014 with the primary aim of helping local young entrepreneurs to compete globally. Sharizal said one of LOKA Malaysia's success factors was its entrepreneur development programme to assist and facilitate its brands to the next level. "Currently, we are working with three of our internal brands to help them restructure and make them more efficient. We get them to prepare their businesses ready for funding and taking them to the next level," said Sharizal. To a question, he said brand selection takes into account a strong Malaysian identity, supply chain strength and commitment to LOKA Malaysia's commercial terms. "We also require them to support one another in terms of marketing and promotions. "As we grow bigger and move to bigger spaces and have more stores, the brands will also move and scale up together with LOKA Malaysia," Sharizal said. -- BERNAMA