State Trading Organisation (STO) has signed a MoU with China Harbour Engineering Company Ltd to reclaim land for agricultural use in Uthuruthilafalhu as part of the Agriculture Economic Zone (AEZ) in Maldives.

The agreement was signed by STO's Managing Director Shimadh Ibrahim and China Harbour Engineering Ltd's Country Manager.

MID said that the agreement would further develop the administration's efforts to diversify the economy, reduce reliance on imports and provide food security. One of the main challenges to food security in the Maldives is the reliance on imports, MID said.

About 90 percent of food used in the Maldives are imported as per MID. One of the contributing factors is the geographic layout of the country, MID said.

As such, with the new MoU with China Harbour Engineering, the administration will seek solutions to the food security challenges.