Malaysian boat builder Hilir Perak Group of Companies is to produce sailing boats and wooden junk boats known as 'walla wallas' for the Hong Kong and Taiwan market.
Managing director Lee Yew Kim said he had received several inquiries from builders in Taiwan and Hong Kong who were planning to move their operations to Malaysia due to high labour and rental costs in their home territories.
'We have had several discussions and expect some results soon,' he said.
Mr Lee said the company would have no problems producing junks due to its experience in building wooden fishing boats.
'Timber is still available in this country and junks built in this country can be sold in many countries, even in the United States,' he said.
'We have been approached by several boat building companies overseas to work on the possibility of establishing a joint venture in this country (Malaysia),' Mr Lee said.