KUALA LUMPUR (Aug 12): Ni Hsin Resources Bhd has teamed up with Fiatec Biosystem Sdn Bhd to develop health and bioenergy products for its new food and beverage (F&B) business. 

The group said its wholly-owned unit Ni Hsin Food & Beverages Sdn Bhd (NHSB) signed a two-year agreement today with Fiatec, which is engaged in innovating and developing health food and technology and providing customised health food solution. 

“With this collaboration with Fiatec, the board of Ni Hsin believes that NHFB will be able to meet this increased demand in the health and wellness food market, by designing a series of functional foods and beverages that promote health and wellness for our target customers,” Ni Hsin said in a statement.

On the onset of the Covid-19 pandemic, NHSB managing director Khoo Chee Kong said the wellness food market is poised for encouraging growth, as “the new normal has made people realise the importance of adopting healthier social habits”.

“Following this change in consumer preference, we are excited for this opportunity to work with Fiatec to design a series of functional foods and beverages that promote health and wellness for our customers,” Khoo said.

“Fiatec is one of only few companies in Malaysia that provides technical support in terms of F&B product development and innovation, and their award-winning team is made up of experts with decades of experience in F&B manufacturing,” he added. 

Fiatec was established in 2004 and has since expanded its business into the Asean markets and other countries such as China, including Hong Kong.

Ni Hsin had announced on July 17 that it was venturing into the F&B segment to mitigate the risk of over-dependence on its existing core manufacturing businesses. The new segment is expected to start generating revenue for Ni Hsin from the first quarter of 2021.

Shares in Ni Hsin closed down 3 sen or 11.11% at 24 sen today, valuing the group at RM77.37 million.