PLS Plantations signs Strategic Partnership Agreement with COFCO Food Import to cooperate on Food Security in Malaysia and China

● This agreement focuses on several food security initiatives which include agriculture development, food reserves, food safety, poverty alleviation, food production, food imports and food pricing.

● Both PLS Plantations and COFCO Food Import entered into Malaysia Durian and Durian Products Distribution Agreement on 24 August 2022.

● PLS Plantations and COFCO Food Import will be responsible for identifying areas of cooperation in the development and implementation of food security initiatives, providing resources, technologies and expertise to support food security initiatives and designating a representative to oversee the implementation of this agreement.

KUALA LUMPUR, 3rd APRIL 2023 – PLS Plantations Bhd (“PLS Plantations” or “Group”), a leading player in the Malaysia agro-food industry, has entered into a Strategic Partnership Agreement with COFCO Food Import Co. Ltd (“COFCO” or “COFCO Food Import”), China's largest food processor, manufacturer, and trader. The collaboration aims to develop and implement food security initiatives under the One Belt, One Road Initiative.

This partnership signifies a substantial milestone for PLS Plantations, as it aligns with the Group's ambition to become a global leader in food production. Through this agreement, PLS Plantations and COFCO Food Import will exchange information and knowledge on food security initiatives; collaborate on food security research and development; jointly invest and implement food security projects; resources, technologies and expertise sharing; and conduct joint training and capacity-building activities related to food security initiatives.

The scope of this agreement includes but is not limited to agriculture development, food reserves, food safety, poverty alleviation, food production, food imports and food pricing.

During the MC Biz Forum held over the weekend, Prime Minister Dato’ Seri Anwar Ibrahim also emphasised the critical role of food security in fostering sustainable economic growth, urging businesses to collaborate in developing innovative solutions to combat hunger and promote food security and stability, while also highlighting that food security is one of the Government’s top three priorities alongside environmental sustainability and digital advancement.

PLS Plantations Chairman, Tan Sri Nazir Razak expressed excitement and pride in forming this strategic partnership with China's largest food processor.

He said, “As we recognise the importance of food security, we believe that it is vital for us to collaborate with some of the leading players in the industry to push forward innovation and scale economies that will strengthen our nation’s food security.”

“By combining our expertise in food production with COFCO Food Import’s extensive resources and experience in the downstream segment, we aim to create a sustainable, efficient and environmentally responsible food ecosystem for the future. We will look for innovative solutions and technologies to address critical challenges such as climate change, soaring fertiliser costs, and the ever increasing demand for food.” Tan Sri Nazir Razak added.

COFCO Food Import General Manager Ms Wu Yiran (吴以然) said, “The top priority of COFCO is addressing China's food security, and this collaboration with PLS Plantations offers an invaluable opportunity to tackle these challenges together. This partnership addresses domestic food security concerns and fosters mutual growth and development for China and Malaysia as we work collectively towards achieving self-sufficiency in food production. In doing so, we aspire to create a model of international cooperation demonstrating how shared goals and collaborative efforts can effectively alleviate global food security concerns and benefit all parties involved.”

Founded in 1949, COFCO is China’s largest food processor, manufacturer and trader. It is also one of Asia’s leading agribusiness group with global footprints and a fully-integrated value chain.

On August 24, 2022, PLS Plantations and COFCO Food Import established their strategic partnership through the Malaysia Durian and Durian Products Distribution Agreement. The partnership grants COFCO Food Import the exclusive rights to promote, off-take and distribute PLS's Malaysian durian and durian products in China.

Tan Sri Nazir Razak is confident that this partnership will lead to further collaboration and expansion into other plantation activities such as forest plantation, cash crops, and other agricultural & aquacultural activities to be identified as part and parcel of the National Food Security Enhancement.

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