Real estate and agriculture company 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, said Hong Lai Huat in a bourse filing on Sept. 7 evening.

The deal, with an estimated investment value of US$1 billion (S$1.36 billion), was inked on Sept. 7.

Skiold is a 140-year-old Danish-based company that is in the farming industry as well.

Both sides will focus on several aspects in the next six months before signing a binding agreement:

These include:

- 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 said the MOU will allow a mutual platform to 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.

Skiold said that this initiative can "help Singapore reach 30 by 30 vision through adopting Danish technologies to raise productivity, apply R&D, strengthen food resilience and sustainability".

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