Brunei Darussalam-based Wasan Milling Co. Sdn Bhd (WMC) is planning to invest ₱286 million over the next five years to boost local rice production in the municipality of Narra, Palawan.

WMC, a subsidiary of state-run holding company Darussalam Assets Sdn Bhd, formalized this five-year investment plan through an agreement with the local government of Narra.

WMC General Manager Saidin bin Namit signed the memorandum of understanding (MOU) with Narra Mayor Gerandy Danao, focusing on contract farming and regional food security.

The food security initiative, in particular, is part of the regional food security program under the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP-EAGA).

WMC’s investment in Narra’s rice sector is projected to cover 5,000 hectares of rice lands, with a yield target of 4.5 metric tons (MT) per hectare, or equivalent to 22,500 MT.

"This production will serve a dual purpose: supplying Brunei under BIMP-EAGA food security, while also supporting the Philippine local market,” said Danao.

WMC’s ₱286-million investment will be contingent on the preparatory planting phase to achieve an average yield of 4.5 metric tons per hectare.

By reaching this benchmark, WMC has committed to scaling up support in the form of providing inputs, technology, and post-harvest systems for contract farming.

A total of 2,000 farmers are expected to benefit from the contract farming agreement with the company.

The initial trial planting is scheduled this month, with a second cycle planned for January next year.

The MOU marks the commencement of the preparatory phase, during which achievable yields will be evaluated, production costs assessed, and the necessary support determined to scale up production.

If the results are successful, participating farmers will enter into long-term supply agreements with WMC.

“This will ultimately integrate Narra's farmers into Brunei's rice supply chain, directly contributing to that nation's food security goals,” said Danao.

Danao added that this would position the municipality of Narra as a contributor to the BIMP-EAGA food security corridor.

Meanwhile, WMC General Manager Saidin Bin Namit expects the company’s investment to help ease the Philippines' reliance on rice imports while also giving local farmers stronger market support.

"Because Brunei is helping cover the production costs, the rice can be sold at a more competitive price,” he said.