With more than half the world’s coconut production originating from within ASEAN itself, the coconut industry is indispensable to many of the region’s economies. This is reflected in the number of livelihoods dependent on it, and the amount of land dedicated to abundant coconut plantations.
Established in 1992, Linaco is a Malaysian-based integrated coconut manufacturer that quickly grew to become a prominent name in the industry. From selling its first few packets of coconut milk powder, the company now spearheads the country’s coconut production and exports an extensive range of products to more than 40 countries globally.
In order to grow its value chain, the company’s directors – brothers Joe and Jimmy Ling – sought UOB’s support. Core to this was an expansion into Kalimantan, Indonesia, which would allow Linaco to tap more abundant supplies of raw coconuts.
Leveraging on its extensive sector knowledge, and comprehensive ASEAN footprint, UOB adopted an integrated approach that allowed Linaco to enter Indonesia making the acquisition of a new factory possible. In the process, UOB also streamlined Linaco’s financial operations, paving the way for seamless connectivity across its financial processes.
Find out how UOB has helped this next-generation company achieve sustained growth, bringing their coconut products to more consumers around the world.
Joe Ling (Group Executive Director, Linaco):
The coconut industry today is almost like solving a puzzle.
Managing the flow of business across our regional network is essential for customers around the world.
Linaco is a family business founded by my late father and now helmed by my brother and I.
We source and process all kinds of coconut products and more than 50 per cent of our products are exported.
Ng Wei Wei (Deputy Chief Executive Officer, UOB Malaysia):
Our relationship with Linaco began in 1993. We were the first banker that granted them working capital during the early stage of their expansion.
Over the years, we’ve been supporting their growth as a key player in the region’s booming coconut production industry and connecting them through our regional branches to opportunities in the region.
We are based in Malaysia and we have a 24-acre manufacturing plant in Batu Pahat.
Indonesia is currently our largest source of coconuts.
In recent years we had a collaboration with a processing plant in Kalimantan.
When we shared our plans for expansion in Indonesia the UOB team did the verification of this partner and they paved the way for Linaco’s new factory.
Ng Wei Wei:
For the Kalimantan expansion, we supported Linaco with funding and working closely with UOB Indonesia to structure solutions that meet the local market requirements.
We also helped streamline its financial operations and processes, fully managed by a single Group Relationship Manager.
With our established platform, clients are able to connect their businesses to growth opportunities in the region with ease.
Our priority as a regional bank is to open doors to opportunities in Asia for businesses.
Ultimately, we want to give clients like Linaco the confidence that UOB is there to support their business growth beyond the next generation, and beyond borders.
We want to move further upstream to build our total value chain.
So that we can ensure that the quality and the treatment of all these supply chains are being done properly.
Banking with UOB for almost three decades, we know that they are not “sunshine bankers”. They have seen us through good times and bad times.
And with them, our finances are in good hands.