BEIJING (April 27): FGV Holdings Bhd is collaborating with PLS Plantation Bhd and three Chinese companies, to venture into durian planting.

PLS Plantation, which has recently acquired durian plantations from its controling shareholder Tan Sri Lim Kang Ho, today signed a heads of agreement (HoA) with FGV and three China-based companies -- namely Shanghai Greenland Group, ZTE Corp, and Shanghai PTSKY. The HoA will enable the four to work with PLS to venture into durian plantations and to export the fruits to China.

Through this collaboration, PLS believes that agricultural development in Malaysia will advance to another level and contribute to Malaysia's economy.

The signing of the HoA was witnessed by Prime Minister Tun Dr Mahathir Mohamad, as well as Agriculture and Agro-Based Industry Minister Datuk Salahuddin Ayub.

Last month, PLS Plantation signed a strategic partnership agreement with Greenland to form the Greenland-PLS Joint Venture to import, sell and market durian products in China.

“Since then, Greenland-PLS Joint Venture has successfully imported products made from the fruits of many popular durian species from Malaysia, including the D197 Musang King and D24 Sultan King, consisting mainly of frozen products,” said PLS Plantation.

PLS Plantation is confident that durians from Malaysia will be in demand. It wants to distribute to various cities in China, and expects this to contribute revenue to its durian business division.

According to trade data compiled by the United Nations, durian exports to China have been increasing by an average of 35% annually, and was estimated to be worth US$1.1 billion in 2017, versus US$243 million a decade ago.