From Malaysia with Love, No. 20
Who Owns Jaya Grocer
and Village Grocer?
Malaysia’s premium two: from family sundry shops to Grab and a Thai conglomerate
I live in the suburbs and go to the nearby premium supermarket. I buy yoghurt, check the discount shelf, and look at the price tags while I am at it. Gradually, what lay behind the shelves began to interest me more than the shelves. Who owns this shop? Digging in, I found eighty years of two families, the ride-hailing app Grab, and a Thai conglomerate.
A suburban kitchen
We live in Gamuda Cove, in the suburbs of Kuala Lumpur. Not because the rent is cheap. We wanted to avoid traffic and find a secure neighbourhood with plenty of foreigners, and that turned out to be the suburbs. Malaysia is relatively safe, but safety is not free; you buy it. A foreign family ends up living somewhere with 24-hour security. Part of the rent is the guards’ salary.
We mostly cook at home. There are almost no Japanese restaurants out here, and with small children, eating at home is simply easier. The kitchen is a little more usable than in a city-centre condominium, which helps. Our ingredients are mainly Chinese; Japanese ones we buy at the supermarket or bring from Japan. We make our own natto and miso. Japanese rice is sometimes cooked as it is, sometimes mixed with japonica rice. We bake bread too. Pork is sold in supermarkets, but not to our liking, so we order it by the kilo from a specialist online butcher.
Fruit, fish and chicken we buy at a down-to-earth supermarket nearby, a halal shop frequented by Malay families. Cheap, fresh and delicious.
Let me define “premium supermarket” briefly. Not an old-money shop like those in Ginza, but a supermarket rich in imported food, with non-halal sections selling pork and alcohol, usually in city malls or affluent neighbourhoods. Prices are a notch above the everyday shops.
To be clear, I do not go to premium supermarkets to indulge. Living here as a foreigner, there are times you simply have to. Many foreigners go for pork, alcohol or seasonings from home. In my case, the targets are low-fat yoghurt and soy sauce, both hard to find in the everyday shops. I do not drink, so I walk straight past the wine. For foreigners, a premium supermarket is less a place of luxury than a supply depot. Near our home there is both a Village Grocer and a Jaya Grocer. The more I shopped, the more the business behind the shelves caught my interest.
Each format has its own king
First, the map. Malaysian grocery retail is clearly split by format.
In supermarkets, AEON leads with 28%. In hypermarkets, Thai-owned Lotus’s has 42%. And among neighbourhood minimarts, 99 Speedmart has 53%, practically running alone. Cheapness, size, range: each yardstick has its own king.
Not everything in a premium supermarket is imported, by the way. Pineapples, bananas and highland leafy greens are often local.
Premium supermarkets hardly show up on this map. In the numbers, they are a small corner. Yet that small corner is now where the highest prices are paid.
The premium two
Premium supermarkets are a two-horse race between Jaya Grocer and Village Grocer. Shares are not published, so compare store counts: Jaya Grocer has 55, Village Grocer 34. Village Grocer’s operator, The Food Purveyor (TFP), also runs B.I.G., the ultra-premium The Food Merchant and others, around 50 stores in all.
Two families that began with a sundry shop
I was surprised by what I found: the two companies have walked almost the same road.
Jaya Grocer began in 1944, when the founding Teng family’s patriarch opened a small sundry shop in Sentul, Kuala Lumpur. The family went on to create Bangsar’s popular TMC and the supermarket chain Giant, both later sold to Hong Kong’s Dairy Farm. Then, in 2007, they opened the first Jaya Grocer in Petaling Jaya.
Village Grocer began in the 1950s with the Ong family’s neighbourhood sundry shop in Gombak. In 1997 they opened the everyday supermarket Pasaraya OTK, and in 2004, the premium Village Grocer in Bangsar Village.
Both started as family sundry shops and became premium supermarkets in the second or third generation. Much of Malaysian Chinese commerce takes this shape: learn your customers’ faces in a small shop, and as those customers prosper, let the shop stretch to grow with them.
Through the funds, to an offer they could not refuse
The next stage is also alike. Mid-growth, a private equity fund comes in: Navis Capital into Village Grocer in 2014, AIGF into Jaya Grocer in 2016. Fund money adds stores and systems, and finally the fund looks for a buyer.
In The Godfather, there is the line: I’ll make him an offer he can’t refuse. What reached both companies was exactly that kind of offer.
Jaya Grocer was bought by Grab, the Singapore-based ride-hailing app, in 2022, for a reported up to RM1.8 billion. TFP, including Village Grocer, was bought by CP Axtra, the Thai CP Group company that runs Lotus’s, for RM1.6 billion, completed in September 2026.
In other words, buy an egg at a Malaysian premium supermarket and part of your money flows to Grab, and part to a Thai conglomerate. The far side of the till is far more international than you might think.
Why do non-supermarkets buy supermarkets?
So why would a ride-hailing app and a hypermarket operator go out of their way to buy premium supermarkets? Through a business lens, the reasons are clear.
What Grab wanted was less the stores than fresh inventory and delivery points. Delivering vegetables and meat ordered online from a nearby store within 30 minutes needs refrigerated warehouses in town. A premium supermarket comes with exactly that. Jaya Grocer’s RM100 million automated warehouse in 2025 sits on the same line.
What CP Axtra wanted was location and customers. Giant hypermarkets can be built on large suburban plots, but cannot get into city-centre malls or affluent neighbourhoods. Premium supermarkets are already there, and their customers choose on quality rather than price.
And one more thing. A premium supermarket’s main earner is in the non-halal room: pork, wine, imported cheese. In a Muslim-majority country, few shops stock these properly. Much of the reason Chinese and foreign customers choose premium supermarkets lies behind that door.
A business view
Given my line of work, here are three lessons.
First, a small corner can sell for more than its size suggests. Premium supermarkets, unremarkable by share, were bought at 1.3 to 1.4 times revenue. What the buyers got was not revenue, but locations and customers they could not get elsewhere.
Second, the shape of a family business exit: build it as a family, grow it with a fund, and finally sell it to a large company that needs to cover its weak spot. The Tengs and the Ongs chose the same road. It is a script Japanese family businesses could use for succession.
Third, a shop floor wears the face of its country. Separate halal and non-halal by room, write prices in Malay, English and Chinese, and put Japanese miso and South African lemons in the same aisle. If you want to do business in a multi-ethnic country, start by learning how to lay out a shop floor.
Supermarket Gaspard
In Juzo Itami’s film Supermarket Woman, a housewife played by Nobuko Miyamoto turns around a failing supermarket through a housewife’s eyes. Look at the shop floor and you understand how the store is run. Customers are watching.
I too watch the shop floor, as one customer who comes from a suburban kitchen. I look at the price of eggs and the size of the pork room, and behind them I see Grab, a Thai conglomerate and eighty years of two families’ history. The basket is light, but the thinking is heavy.
Mind you, all I bring home is low-fat yoghurt, soy sauce and whatever is on the discount shelf by the entrance. Fruit, fish and chicken come from the everyday shop, and natto and miso we make at home. For a premium supermarket, I am probably not a very profitable customer.