KUALA LUMPUR, Dec 1 — Leading manufacturer of rubberwood furniture in Malaysia, Sand Nisko Capital Bhd’s (SNC) wholly owned subsidiary Len Cheong Resources Sdn Bhd (LCR) has entered into a joint venture agreement (JVA) with Mutiara Mahajuta Sdn Bhd for dual phases development of approximately 65.56 hectares (162 acres) of land in Alor Gajah, Melaka.
In a filing with Bursa Malaysia, SNC said the first phase of development entails agriculture development while the second phase will be for a mixed development of residential, commercial and/or industrial buildings.
Meanwhile, in a statement today SNC managing director Emily Sow Mei Chet said the project consists of three components, namely aquaponics farm which combines aquaculture with hydroponics farming, the solar photovoltaic energy generation facility with capacity of up to 100MW and the setting-up of a dedicated agro-tourism centre that is complete with farm, fruit orchard and marketplace.
“It is a very strategic move for SNC as we are able to lock in the greenfield land earlier and still enjoy the benefits from the land’s cultivation into brownfield agriculture land before the final conversion into a mixed development project.
“From the environmental, social and governance (ESG) perspective, the joint venture project offers a good opportunity for SNC to reduce its carbon footprint,” she said.
She added that the aquaponics farm and agro-tourism centre are also expected to open doors for jobs and encourage entrepreneurship, especially among the local communities as they attract more foreign tourists into the area.
The proposed project is expected to bring long-term earnings visibility for the group and ensure the financial stability for SNC.
SNC intends to fund the project via a combination of internally generated funds and/or bank borrowings and/or any other fund-raising exercise for SNC and its subsidiaries.
The long-term, dual phase development project will put SNC on the forefront of both the agriculture and property development segment. — Bernama