Leading dairy firm Mengniu has signed a 3 year contract with Malaysia's Seagull Group, which will distributed Mengniu's liquid milk in the country.

The move, which is reportedly seen as the first time a Chinese dairy company has entered the Malaysian market, is expected to provide Mengniu with a 10% market share.

Mengniu expects Seagull Group to import 4.53 million Ringgit (USD 1.3 million) of liquid milk products. East and Southeast Asia are Mengniu's target markets, Bai Ying, Mengniu's vice-president and general manager of the Normal Temperature Liquid Milk Department said.