Property and agriculture company Hong Lai Huat on September 7, entered into a non-binding memorandum of understanding (MOU) with Skiold A/S for a proposed Cambodia-Singapore Agriculture Special Economic Zone with an estimated investment value of US$1 billion ($1.36 billion).

Skiold A/S is a 140-year-old Danish-based company that is in the farming and agriculture industry as well.

The objective of the MOU is to “create the foundation for the first mutual platform for cooperation to enhance trade and economic cooperation and technical exchanges within the field of poultry and cattle farming as well as seed processing for Cambodia,” says Hong Lai Huat in a September 7 statement.

Under the MOU, both companies have agreed to initiate the setting up of livestock and seed production in the agriculture economic zone, perform a feasibility study of the proposed new project for the initiative comprising the development and implementation of livestock and agricultural production, and create more job opportunities within the next six months.

“We are very pleased to have entered into this MoU with SKIOLD A/S on the potential collaboration of the Cambodia-Singapore Agriculture Special Economic Zone,” says Ong Jia Jing general manager and executive director at Hong Lai Huat.

“Particularly in a world that has been greatly affected by Covid-19, food security is a highly significant matter that all countries are looking into resolving. We believe that this collaboration will be meaningful and a success for both of our companies and will allow us to contribute to Cambodia as well as Singapore,” Ong adds.

“Being a company that has broad range of expertise in the livestock industry we see this collaboration as an excellent connection and hope to see positive result spin-offs from the initiative not only to Cambodia but also for Singapore, we that through this initiative in return help Singapore reach 30 by 30 vision through adopting Danish technologies to raise productivity, apply R&D, strengthen food resilience and sustainability”, says Sussie Ketit, Regional Director for SKIOLD A/S.

Shares in Hong Lai Huat closed 0.6 cent higher, or 5.2% up, at 12.1 cents on September 7.