Landmark partnership marks Magma’s entry into Malaysia’s rapidly growing premium beverage market
KUALA LUMPUR, 16 MAY 2025 – Magma Group Berhad (“Magma” or the “Group”), a Malaysian conglomerate and investment holding entity rooted in hospitality, with an expanding presence in property development and related sectors, today announced that its wholly-owned subsidiary, Magma Chain Management Sdn Bhd (“Magma Chain Management”) has entered into a strategic joint venture and a subscription agreement with CHAGEE (M) Sdn Bhd (“CHAGEE”), an internationally recognised premium tea brand, to accelerate the development of CHAGEE’s retail footprint across Malaysia through a phased retail rollout.
The joint venture marks a key milestone in the Group’s diversification strategy into the premium food and beverage retail segment. Under the terms of the joint venture agreement, CHAGEE will hold a 60% stake and Magma Chain Management a 40% stake in the newly established joint venture company, namely Chagee Magma Sdn Bhd (“JVC”).
The JVC aims to open up to 300 directly managed CHAGEE outlets across Malaysia, through a phased rollout, subject to prevailing market conditions. Detailed announcements regarding specific store launches will be provided in due course.
CHAGEE is a leading premium tea drinks brand, serving healthy and delicious freshly made tea beverages. Founded in 2017, CHAGEE has transformed traditional tea culture into a modern lifestyle experience, leveraging cutting-edge technology and innovative branding. With its commitment to quality, innovation, and cultural connection, Chagee continues to reshape the global tea industry.
CHAGEE entered the Malaysian market in 2019 under the name BaWangChaJi, before unifying its global branding under the CHAGEE name in September 2021. Today, Malaysia is CHAGEE’s largest market outside of China, and its Malaysian operations are Halal-certified by JAKIM, further solidifying the brand’s inclusive approach in catering to local consumers.
Dato’ Sri Thomas Liang Chee Fong, Group Managing Director cum Group CEO of Magma Group Berhad, commented, “This joint venture reflects Magma Group’s strategic vision to diversify into high-growth lifestyle and consumer segments. The partnership leverages CHAGEE’s proven operational excellence and strong consumer appeal, recently reinforced by its successful Nasdaq listing, alongside Magma’s deep expertise in local market development and execution. Together, we see substantial opportunities to capture significant value within Malaysia’s expanding premium tea market.”
The collaboration strategically combines CHAGEE’s established brand strength, global credibility, and premium product offerings with Magma’s local market insight and development expertise to jointly facilitate the rollout of new outlets. Leveraging Magma’s hospitality background and commercial presence in Malaysia, the partnership is well-positioned to accelerate CHAGEE’s nationwide expansion and respond to growing demand for premium, lifestyle-oriented beverage experiences.
This joint venture aligns with Magma Group’s broader vision to develop a diversified portfolio that meets the evolving lifestyle preferences of Malaysia’s dynamic consumer base, driving sustainable long-term shareholder value.
