A Malaysian firm on Saturday signed a joint agricultural agreement with property development company Paragon Corporation Cambodia worth a potential US$2 billion in exports of corn, rubber, coffee and other cash crops.

Penned by Paragon Corporation Cambodia and Markmore Group Malaysia, the joint development project will develop 400,000 hectares of corn, sugarcane, rubber, cocoa, coffee, pepper and rice in Mondulkiri, Kampong Cham and Kratie provinces. At current prices, the export value of the products is expected to be about $2 billion, according to those familiar with the deal.

The agreement allows for duty-free trade between Cambodia and Malaysia and will be mutually beneficial for the two countries, Eang Sophalet, advisor to Prime Minister Hun Sen, said.

“It is a good chance for Cambodia and Malaysia … [The agreement] will create many jobs so we can reduce the poverty in those provinces,” Eang Sophalet said.

Tan Sri Halim Saad, former executive chairman of United Engineers Malaysia, said the project will engage directly about 250,000 families while providing support services to another 50,000 families in areas in need of roads, schools and hospitals.