PETALING JAYA: Thong Guan Industries Bhd says the implementation of the minimum wage in Malaysia in the first quarter of this year has added to cost pressures by increasing payroll and overall operational expenses.

In a filing with Bursa Malaysia, the plastic packaging manufacturer said it was committed to cost mitigation through waste reduction, process optimisation and improved operational efficiency.

“At the same time, the group will continue to expand its market presence across all business regions and explore new avenues for sustainable growth.”

In the first quarter ended March 31, 2025 (1Q25), Thong Guan’s net profit dropped to RM17.89mil from RM23.91mil in the previous corresponding quarter, while revenue dipped to RM319.01mil from RM344.65mil a year earlier.

The company’s plastic packaging product division registered a revenue of RM277.80mil as compared to RM307.41mil in the corresponding quarter of the financial year.

The board of directors has proposed an interim dividend of 4.5 sen per ordinary share for the current quarter to be paid on July 18.