Key Alliance inks MoU on proposed Felcra collaboration

KUALA LUMPUR: Key Alliance Group Bhd's subsidiary Agrocloud Sdn Bhd is exploring a collaboration with Koperasi Peserta-Peserta Rancagan Felcra Seberang Perak Bhd (Felcra) for the development of the Rice Information System at the estate of Felcra Bhd Seberang Perak in Kg Gajah, Perak.

It said in a filing with Bursa Malaysia that the project will facilitate an increase in the yield of rice cultivation through Internet of Things technology and a decision support sytem.

It would also ensure that the farming methods used are modern and fully mechanised farming methods, as well as implement the appropriate farming methods to be determined later.

Pursuant to the memorandum of understanding, Felca shall act as the coordinator for the Proposed Collaboration and facilitate the necessary for the implementation of the Rice Information System. Whereas, Agrocloud shall provide Koperasi Felca with the relevant information technology, equipment, platform as well as training for the Proposed Collaboration.

The MoU will take effect on June 1, 2022, and remains in force for 12 months.

"The MoU will not have any effects on the share capital and shareholding structure of the Company.

"However, it is expected to have positive contribution to the KAG Group’s future earnings per share, net assets per share and gearing," said Key Alliance.