November 26, 2012
 

Chinese agro firm to establish commercial agro development in Malaysia
 

Through a collaboration with the Malaysian government, an established Chinese agro firm is planning to create the largest commercial agro development in Malaysia worth CNY1 billion (US$160 million).
 
China Liaoning Wufeng Agricultural Pte Ltd will enter a joint venture with state agency, Pahang Technology Resources Sdn Bhd, to establish the agropolitan covering 10,000 hectares to plant padi and other crops like banana, and corn; breed chicken, duck and boer goat; as well as fisheries.

In an email, the local subsidiary Wufeng Agriculture Holdings Sdn Bhd said the company would sign a memorandum of understanding with Pahang Technology Resources tomorrow. Business development director Cornelius Mah at the wholly-owned local outfit said it would be a pre-agreement signing to initiate pilot planting.

"The state will earmark a suitable area for us to start. Subsequently, the state government will allocate various locations for us throughout Pahang," he said.

On the investment, Mah said Wufeng would be undertaking the financing but "the specific details will be worked out later on."

Mah said the crops would be planted for local and foreign consumption. The development would also encourage related downstream activities. The collaboration is China Liaoning Wufeng Agricultural's first overseas venture after 30 years' experience in padi planting. It has 24 rice mills throughout China and recently started one in Vietnam.

"We are looking at possible technology transfer from Wufeng in the rice milling operations as well," Mah said.