
How a RM2.60 pricing strategy will make Eco-Shop's Lee a billionaire through Malaysia's biggest IPO of 2025
KUALA LUMPUR, May 22 — Eco-Shop Marketing Bhd, a discount chain with over 350 stores across Malaysia, is set to go public in Kuala Lumpur on Friday in the country's largest IPO of the year.
The listing will value the company at about RM6.38 billion, giving founder and managing director Datuk Seri Lee Kar Whatt a RM4.9 billion stake, according to the Bloomberg Billionaires Index.
The company's rapid growth — with revenue rising over 50 per cent in two years — underscores strong demand for low-cost goods amid rising inflation, Bloomberg reported.
'Fixed-price retailers became a first choice,' said Ng Zhu Hann, founder and chief executive officer of Tradeview Capital, in an interview. He was referring to Eco-Shop's fixed RM2.60 price for all items sold in its Peninsular Malaysia outlets.
Lee co-founded the first store in 2003 with his brother and two others, and still operates from the company's headquarters in Jementah, Johor.
Ng noted that Eco-Shop competes with established players such as Mr DIY Group (M) Bhd, as well as newer entrants led by entrepreneurs from mainland China.
In its prospectus, Eco-Shop stated that it sees ample growth potential and aims to open around 70 new stores each year over the next five years.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Free Malaysia Today
2 hours ago
- Free Malaysia Today
Govt to impose 5-10% sales tax on non-essentials, service tax expanded
The finance ministry previously said that the expansion of the sales and service tax is expected to generate RM51.7 billion in revenue in 2025. PETALING JAYA : The 0% sales tax rate for basic necessities will be maintained while a 5% to 10% rate will be imposed on non-essential goods from July 1, the finance ministry announced this evening. Meanwhile, the service tax will be expanded to include rent, lease, construction, financial services, private healthcare and education. 'This expansion however would come with some exemptions to avoid double taxation and ensure that Malaysians are not taxed for certain services,' finance minister II Amir Hamzah Azizan said in a statement. In November, Amir said the expansion of the sales and service tax (SST) was expected to generate RM51.7 billion in revenue in 2025. This would represent an additional revenue of RM5 billion over the current SST collection forecast of RM46.7 billion. Amir, this evening, said the review of the SST was done after engaging the stakeholders, including the associations of relevant industries and tax agents. He added that their input and feedback were taken into account to cushion the impact the policy would have on the industries and to ensure it would not affect the majority of the people. 'The government is committed to pushing for economic reforms. 'To ensure that the people are not impacted by the review of the SST, the government will adopt a targeted approach to make sure essential goods and services are not taxed.'


Malay Mail
3 hours ago
- Malay Mail
Malaysia introduces targeted SST overhaul from July: Essentials exempt, non‑essentials taxed at 5–10pc
KUALA LUMPUR, June 9 — The Ministry of Finance has issued a statement on the implementation of revised Sales Tax (ST) rates and expanded scope of the Service Tax effective July 1, 2025. The aim is to strengthen the country's fiscal position by increasing revenue and broadening the tax base. 1. Sales Tax i. Under the revised Sales Tax (ST) structure, essential daily goods remain taxed at zero per cent. These include chicken, beef, mutton, fish, prawns, squid, local vegetables and fruits, rice, barley, oats, wheat, flour, canned sardines, sugar, salt, white bread, pasta, vermicelli, noodles, instant noodles, milk, cooking oil, medicine, medical devices, books, journals, newspapers and pet food. The zero per cent rate is also maintained for key construction materials (cement, stones, sand) and agricultural inputs such as fertilisers, pesticides, and agricultural and livestock machinery. ii. The Madani Government is maintaining zero ST on essential daily items to avoid direct impact on the cost of living for most citizens and to keep inflation in check. iii. Selected non-essential goods will now be taxed at five (5) per cent, up from zero, including king crab, salmon, cod, truffle mushrooms, imported fruits, essential oils, silk fabrics and industrial machinery. iv. Premium discretionary goods such as racing bicycles and antique hand-painted artworks will be taxed at 10 per cent. 2. Service Tax Under the expanded Service Tax scope, six new service categories will be included: leasing or rental, construction, financial services, private healthcare, education and beauty services. i. Leasing or rental services An eight (8) per cent Service Tax will apply to service providers with annual rental or leasing income exceeding RM500,000. The Madani Government will provide exemptions for: a) Residential property rentals, reading materials, financial leases and tangible assets located outside Malaysia; b) Micro, small and medium enterprises (MSMEs) with annual turnover below RM500,000; c) Business-to-business (B2B) transactions and group relief to prevent double taxation; d) Non-reviewable contracts, which are granted a 12-month exemption from the effective date. ii. Construction services A six (6) per cent Service Tax will apply to providers with revenue exceeding RM1.5 million. Special measures include: a) A higher RM1.5 million threshold to ease compliance for smaller contractors; b) Service Tax exemption for residential buildings and public amenities; c) B2B exemptions to avoid double taxation; d) Non-reviewable contracts granted a 12-month exemption. iii. Financial services An eight (8) per cent Service Tax will be applied to fee- or commission-based services. Exemptions include: a) Basic financial services such as basic banking and interest- or profit-based Islamic financing; b) Foreign exchange and capital market gains, punitive charges, outward remittances, export-linked financing, fees to overseas remittance agents for inbound transfers, and brokerage/underwriting for life, medical and family takaful/insurance; c) B2B exemptions, shariah-compliant services and services provided for Bursa Malaysia and Labuan. iv. Private healthcare services A six (6) per cent Service Tax will apply to non-citizens using private healthcare, traditional and complementary medicine, and allied health services, provided by companies with turnover exceeding RM1.5 million. The Madani Government provides: a) Service Tax exemption for Malaysians receiving public or private healthcare, including traditional medicine (Malay, Chinese, Indian, Islamic), homeopathy, chiropractic and osteopathy; b) Service Tax exemption for allied health services (e.g. physiotherapy, audiology, speech therapy) to reduce costs and improve access; c) A reduced six (6) per cent rate for non-citizens; d) A higher threshold of RM1.5 million to reduce compliance burden for small and medium-sized clinics. v. Education services A six (6) per cent Service Tax will be applied as follows: a) Private pre-school, primary and secondary education with annual fees exceeding RM60,000 per student; b) The Madani Government views this as a targeted measure affecting high-value institutions, with limited impact. Malaysian citizens with disabilities will be exempt; c) Higher education institutions will only be taxed on fees charged to non-citizens. There will be no Service Tax on Malaysian citizens pursuing higher education. vi. Beauty services An eight (8) per cent Service Tax will apply to service providers with taxable services exceeding RM500,000 over 12 months. Examples include facial treatments and hairdressing. In line with the expansion of Service Tax scope, legal notification and gazettement will give industry players time to assess whether: i. Their business operations fall within the taxable scope; ii. Their service value exceeds the 12-month threshold; iii. They need to seek advice from the Royal Malaysian Customs Department on registration, business model adjustments, training, and documentation. — Bernama


Free Malaysia Today
3 hours ago
- Free Malaysia Today
Yinson denies holding buyout talks with 3rd party
Yinson Holdings Bhd was founded by Lim Han Weng, who is also the company's executive chairman. (Facebook pic) KUALA LUMPUR : Yinson Holdings Bhd has denied being in discussions with any third party for a buyout exercise. The company was responding to reports on June 6 of a potential US$2.1 billion acquisition by Stonepeak, a US-based investment firm. However, Yinson said it is currently engaging in 'exploratory discussions regarding possible corporate proposals'. 'After consultation with its major shareholders, the company was advised by group executive chairman Lim Han Weng that they are in exploratory discussions with various parties regarding potential corporate proposals concerning their shareholding in Yinson. 'There is currently no conclusive indication that the discussions would give rise to a corporate proposal involving Yinson,' the company said in a filing with Bursa Malaysia today. Yinson also said it would make an appropriate announcement should any corporate exercise materialise, in line with Bursa's Main Market listing requirements. 'The company wishes to remind shareholders to exercise caution and seek appropriate advice when dealing in Yinson's shares.'