The agreement was signed in conjunction with the visit of Prime Minister, Datuk Seri Najib Tun Abdul Razak at Naga World Hotel in Phnom Penh today (12 May), reports Malay Mail.

Ahamad Mohamad, Deputy Chairman of QSR, and Neak Oknha Kith Meng, Chairman of RGC, signed on behalf of their respective groups. Jamaludin Md Ali, Managing Director of QSR, also witnessed the signing.

The new joint venture company will be 51 per cent owned by QSR and 49 per cent owned by RGC, and it will have an initial paid-up capital of US$300,000 (MYR1 million).

It will initially build 25 broiler houses to rent out to contract farmers, provide feed and day-old chicks, contract broilers to third parties for processing and supply KFC-size cut chicken pieces to KFC restaurants.

The capacity of the contract broiler houses is expected to be about 100,000 birds per cycle, which is sufficient to meet the total projected demand of KFC restaurants in Cambodia this year.

Mr Mohamad said: "This is an important development which deepens support for KFC's expansion in Cambodia, enabling it to manage its costs better and ensuring a consistent supply of quality Halal chicken to its restaurants."

According to Malay Mail, non-KFC-size chicken will be sold in the open market, so the company will also be creating new business opportunities through retailing and wholesaling of chicken to the public.