GEORGE TOWN (Jan 16): Sime Darby Property Bhd (KL:SIMEPROP) is joining hands with Singapore-based YCH Group, a supply chain solutions outfit, to develop logistics hubs in Malaysia, Vietnam and other Asean markets.

The two companies inked a memorandum of understanding (MOU) for the proposed partnership at the sidelines of the 102nd Asean Business Advisory Council (Asean-BAC) Meeting on Thursday.

According to Asean-BAC, the first major milestone will be the development of a landmark logistics facility in Sime Darby Property's port-centric township of Bandar Bukit Raja in Klang, Selangor. The facility is expected to cost at least RM300 million and will be modeled after YCH's flagship Supply Chain City in Singapore.

"The collaboration aims to boost economic growth through durian exports, strengthen ties among Asean member states, enhance Philippine agricultural practices, create jobs, and pave the way for future food security projects," said Asean-BAC in a statement.

The MOU was one of three announced during a press conference by the Asean-BAC on Thursday, including one signed by Malaysia's Bornion Green Sdn Bhd and the Philippines' Yovel East Research and Development Inc to establish a Musang King durian plantation in the Philippines.

"The collaboration aims to boost economic growth through durian exports, strengthen ties among Asean member states, enhance Philippine agricultural practices, create jobs, and pave the way for future food security projects," said Asean-BAC.

The third MOU was one entered into between the Canada-Asean Business Council and Asean-BAC to boost trade and investment between Asean and Canada, particularly via the Asean-Canada Free Trade Agreement (ACAFTA).

Sime Darby Property's shares closed unchanged at RM1.47 on Thursday, giving the group a market capitalisation of RM10 billion.