[KUALA LUMPUR] The Malaysian arm of South Korea’s Cuckoo Homesys wants more room in Singaporeans homes as it plans to invest RM10 million (S$3 million) over the next two years to expand beyond its trademark purifiers into mattresses, air-conditioners, massage chairs and home care services.
Bursa Malaysian-listed Cuckoo International (MAL) (Cuckoo Malaysia) said that demand for clean water, fresh air, quality rest and premium home services will give the appliance maker an edge in a crowded market, chief executive officer and executive director Hoe Kian Choon told The Business Times.
Hoe said: “Even though Singapore only contributes a small slice of revenue today, it’s full of potential,”
“We’re planting the seeds now for a much bigger presence,” he added.
The push by Malaysia’s second-largest home appliance rental player, will include five new third-party outlets through retailers such as Harvey Norman and Audio House. They will complement three existing brand stores.
While the allocation may not appear large, it is part of the company’s long game in one of Asia’s most saturated consumer appliance markets. “Undeniably, it’s a highly competitive market with a wide range of choices, and we are competing with global brands that already have strong local presence,” the CEO said.
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The company, which has a market capitalisation of nearly RM1.2 billion as at Aug 29, is the sole distributor of Cuckoo-branded home appliances in Malaysia, Singapore and Brunei.
Unlike many rivals that sell appliances outright, Cuckoo bundles its products with home care packages covering delivery and installation, regular maintenance and cleaning services, and routine replacement of parts.
“Singapore’s market goes beyond purchasing power; consumers are open to innovative products and demand convenient, premium services. This combination is our key advantage,” Hoe said.
“When Singapore consumers hear about our service package, they immediately say this is something they really need,” he added.
Cuckoo Malaysia’s second-quarter revenue grew 3.5 per cent year on year to RM306.7 million, following its June listing. However, profit fell 1.8 per cent to RM27.4 million, due to listing expenses and higher net impairment losses on financial instruments.
The company gained a foothold in Singapore in 2016 and regards the market as a natural extension of its Malaysian stronghold, with proximity to Johor and word-of-mouth marketing helping attract early customers.
From rice cooker to full range home appliances
Hoe founded Cuckoo Malaysia in 2014 after leaving a major role at an established home appliance and home care services company, bringing South Korea’s Cuckoo brand to the Malaysian market.
Beginning with rice cookers and water purifiers, Cuckoo Malaysia’s product line-up has expanded to 120 products as at mid-2025. It plans to grow the portfolio to 129 by year-end.
In expanding its product range, the company has pioneered a “co-created” model with established brands to diversify its offerings rather than relying solely on products from South Korea.
“While our competitors offer similar products such as massage chairs and air-conditioning, they are mostly sourced from original equipment manufacturers. Our co-creation model makes us stand out,” Hoe said.
Notable partners include Samsung for home electronics, Ogawa for massage chairs, Fujiaire for air-conditioners, and Napure for mattresses. These partnerships enable Cuckoo to enter new categories, share product development costs and manage risk.
The rental of Cuckoo-branded and Cuckoo co-created products – including water and air purifiers, kitchen appliances, outdoor filters, mattresses, air conditioners and massage chairs – made up over 62 per cent of the company’s revenue in financial year 2024.
Over time, the portfolio expanded beyond household appliances to include beauty and wellness products under the WonderLab and WonderDewi brands, as well as WonderKlean, which provides home care services, such as disinfection and professional cleaning.
“All this in line with the company’s vision of anything that helps to create a healthy home”, the CEO said.
Rental model resilience
The rental-based business model remains the company’s core strength, with about 90 per cent of its revenue coming from this segment. This has given Cuckoo Malaysia a 23.1 per cent market share, making it the second-largest player in Malaysia’s home appliance rental industry in 2024.
This recurring revenue provides predictable cash flow and lowers sales volatility. “Even during recession or when Malaysia is going through a hard time, we are still growing,” said Hoe.
“Health and wellness are no longer being perceived as luxuries but necessities”, he said, noting that the rental plans makes products more affordable, with monthly payments as low as around RM60 – roughly RM2 a day.
Going retail
In Malaysia, Cuckoo also diversifying its sales channels, moving from its initial agency-led model into various e-commerce platforms, including livestreaming, traditional kiosks and bigger “cash and carry” outlets.
Ten of these 1,000 square foot outlets are planned within the next two years, showcasing a fuller range of appliances than the smaller kiosks. They will also double up as livestreaming studios to tap into the surge in online shopping.
“Livestreaming has surprised us,” Hoe said. “In a recent livestream session, we sold 1,000 shower heads in just 11 minutes. Last month alone, e-commerce sales touched nearly half a million ringgit.”
Lower-priced items such as rice cookers and filtered shower heads are now routed through online channels, while premium products remain the domain of brand stores and rental packages.
Malaysia is core
Malaysia remains the backbone of Cuckoo International’s operations, contributing around 90 per cent of the group’s revenue.
Yet, the market is still far from saturated. Penetration for rental-based home appliances is estimated at just 10 to 15 per cent, leaving significant headroom for expansion, Hoe said.
Brunei, though a much smaller market, is part of Cuckoo’s three-country focus alongside Malaysia and Singapore. Consumers there are also attracted to premium appliances without hefty upfront costs.
For the next three years, the company will focus on these three markets rather than rushing into new territories, prioritising scale, brand stickiness and recurring revenue, he added.
