Officials of the municipality of Narra, Palawan, and Brunei’s Wasan Milling Company Sdn Bhd (WMC) have signed a memorandum of understanding (MOU) for a contract farming program.
WMC plans to invest P286 million over the next five years to bolster local rice production.
The agreement, which falls under the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) regional food security program, was formally signed in Pasig City by Narra Mayor Gerandy Danao and WMC general manager Saidin bin Namit.
The investment, conditional on achieving specific yield targets, is projected to cover 5,000 hectares of rice lands and aims to engage up to 2,000 farmers.
“The program will cover 5,000 hectares, with a yield target of 4.5 metric tons per hectare,” Danao said.
“This equates to 22,500 metric tons of paddy rice annually by year five. This production will serve a dual purpose: supplying Brunei under BIMP-EAGA food security, while also supporting the Philippine local market,” he said.
The investment will be used to provide inputs, technology transfer, and market linkage for the participating farmers. The P286 million is contingent on the preparatory planting phase achieving an average yield of 4.5 metric tons per hectare. Once this benchmark is met, WMC will scale up support, providing inputs, technology, and post-harvest systems for contract farming.
“Because Brunei is helping cover the production costs, the rice can be sold at a more competitive price, easing reliance on imported rice and giving local farmers stronger market support,” said Namit.
The initial trial planting is scheduled for October 2025, with a second cycle in January 2026 if required. The MOU signals the beginning of the preparatory phase to evaluate achievable yields, assess production costs, and determine the necessary support to successfully scale up production.
Once results prove successful, participating farmers will transition into long-term supply agreements, ensuring stable market access beyond Palawan and the Philippines. This will ultimately integrate Narra’s farmers into Brunei’s rice supply chain, directly contributing to that nation’s food security goals.
Vice Mayor Jojo Gastanes and Ambassador of Brunei Darussalam to the Philippines Megawati Dato Paduka Haji Manan witnessed the signing ceremony, along with delegates from the Department of Agriculture (DA), the Department of the Interior and Local Government (DILG), and private sector stakeholders.
The collaboration aims to strengthen Narra’s agricultural economy, provide farmers with better income stability, and position the municipality as a contributor to the BIMP-EAGA food security corridor.
