Hong Lai Huat inks MOU for livestock, seed production in Cambodia

MAINBOARD-LISTED real estate and agriculture firm Hong Lai Huat Group has inked a non-binding memorandum of understanding (MOU) with Denmark-based farm equipment supplier Skiold.

Both parties intend to collaborate for a proposed Cambodia-Singapore Agriculture Special Economic Zone with an estimated investment value of US$1 billion, said Hong Lai Huat in a bourse filing on Monday evening.

In the next six months, they will focus on the following aspects before signing a binding agreement: initiate the setting up of livestock and seed production in the Special Economic Zone; perform a feasibility study of the proposed new project to produce poultry, cattle and seed production in Cambodia as well as Singapore, to supply and enhance Singapore's food security; and create more job opportunities for countries in connection with this partnership and the resulting spin-offs.

Hong Lai Huat added that with the MOU, a mutual platform can be built to enhance trade and economic cooperation and technical exchanges within the field of poultry and cattle farming as well as seed processing for Cambodia.

Shares of Hong Lai Huat rose 0.6 Singapore cent or 5.2 per cent to close at 12.1 cents on Monday, before the announcement.

The company's agricultural arm cultivates cassava in Cambodia's Kampong Speu province and produces native tapioca starch for food and industrial users in Europe and South-east Asia.