PETALING JAYA: DXN Holdings Bhd
has signed a memorandum of understanding (MoU) with Venezuela’s La Guaira Special Economic Zone (La Guaira SEZ) to explore potential investment and business opportunities in sustainable agriculture, aquaculture, agro-processing and manufacturing.
The five-year MoU, signed on Nov 9, also covers cooperation in developing a halal ecosystem in Venezuela, with potential areas of collaboration including biofertilisers, technology transfer and training, as well as support for the development of halal certification infrastructure.
Under the MoU, La Guaira SEZ may facilitate the identification of suitable land for potential plantation development.
According to the group, if viable, the proposed initiatives could diversify DXN’s raw material supply, improve traceability and support its regional manufacturing operations.
“Working with La Guaira SEZ gives us a way to assess new sources of raw materials and explore how local processing could support our Latin American operations,” DXN group chief executive officer Prajith Pavithran said in a note.
“We also see an opportunity to share our experience in Malaysia’s halal industry with the relevant Venezuelan authorities,” he added.
Latin America accounted for 61.2% of DXN’s group gross revenue for the financial year ended Feb 28.
The group operates a manufacturing plant in Mexico, is developing facilities in Peru and Bolivia, and has coffee plantations in Brazil and Bolivia.
Established by the Venezuelan government in 2023, La Guaira SEZ aims to attract domestic and foreign investment to the State of La Guaira.
Its priority sectors include industrial development, technology, logistics and transport, tourism, and agro-food.
DXN expects the MoU to have no material financial impact on the group for the financial year ending Feb 28, 2027.
The MoU was signed in Caracas by La Guaira SEZ sole authority Marcos Meléndez and DXN project director Foo Wai Leong. The MoU is non-binding and carries no investment commitment.
