[JOHOR BAHRU] Malaysia’s FarmByte, an agri-food company under the Johor Corporation Group (JCorp), has joined hands with Singapore’s agritech company Archisen to develop a smart indoor vertical farm in Johor Bahru.

The facility will span 52,000 square feet with an estimated total capital requirement of RM36.7 million (S$10.3 million), the two companies said in a joint statement.

The farm, slated to be operational by the end of 2024, will have an annual production of over 306,000 kg of vegetables such as crystal lettuce, mustard greens and ice plants.

They intend to market and sell the vegetables in Malaysia, as well as put the fresh produce on supermarket shelves in Singapore.

FarmByte said it will invest RM12.2 million into Archisen as a reflection of the former’s commitment to foster the long-term growth of the company and the partnership.

In this joint venture (JV), FarmByte will own 70 per cent of the stake and the remainder will be owned by Archisen.

A NEWSLETTER FOR YOU

Friday, 8.30 am

Asean Business

Business insights centering on South-east Asia's fast-growing economies.

Sign Up

For the running of the new indoor vertical farm, FarmByte will provide local farming and agrofood insights, while Archisen will contribute their expertise on vertical farming as well as farm installation, supply and maintenance.

FarmByte chief executive Syed Aiman Kifli Syed Jaafar said the JV builds on the longstanding and deep economic ties between Malaysia and Singapore, and is also testament to FarmByte’s commitment to a digital-first approach in farming.

“The smart indoor vertical farm that we will develop in Johor supports our ongoing efforts in creating high-value jobs in agriculture and attracting youth and talent into the industry,” he said.

FarmByte – established in early 2023 by state-owned development institution JCorp – was created to enhance Johor’s food security efforts. This includes integrating technology into the agri-food production ecosystem and improving the livelihood of farmers.

Archisen chief executive Vincent Wei said the collaboration with FarmByte aligns with Archisen’s vision in using innovation to work towards the goal of food security. It will also help to ensure a constant stream of high quality produce to both countries and develop a new generation of urban farmers.

Currently, Archisen operates one of the highest-yielding indoor farms in Singapore with a projected yield of up to 100 tonnes of vegetables a year. The company supplies its vegetables under the Just Produce brand to various retailers in Singapore.