BURSA Malaysia-listed BP Plastics Holdings Bhd expects to receive approval soon to start a rubber plantation in Mondulkiri province, according to media reports.

Chairman and Managing Director Lim Chun Yow said the application was “progressing well” and the company would make the necessary announcement once it received the green light, Malaysian newspaper The Star reported yesterday.

In its annual report released last month, the firm said it aimed to diversify into rubber cultivation to deliver sustainable returns to shareholders.

“The decision to select Cambodia for rubber cultivation is due to the availability of arable land, costs consideration and outlook for natural rubber demand for the next few decades,” the report said.

BP Plastics could not be reached for comment by The Post yesterday.

Meanwhile, rubber prices have increased substantially in the last year.

Rubber closed at 15,980 ringgit (US$5315.15) per tonne yesterday, from some 11,855 ringgit from June 2010, according to data for the highest listed grade from the Malaysian Rubber Board.