Agrobank Announces RM110 Million Financing Campaign To Help Micro, Small Enterprises
KUALA LUMPUR – As a unique Development Financial Institution (DFI) with a primary focus on strengthening the agriculture sector in Malaysia, Agrobank’s mission remains steadfast in ensuring the growth of agriculture and food industries sector. Today, Agrobank through its another strategic collaboration with Ministry of Agriculture and Food Industries (MAFI), has allocated RM110 million through its financing campaign called ‘Dana Agromakanan Keluarga Malaysia’ in conjunction with the newly launch ‘Keluarga Malaysia’ concept by Prime Minister, YAB Dato’ Sri Ismail Sabri Yaakob on 23 October 2021.
A symbolic mock cheque presentation was held at Agrobank headquarters where YB Datuk Seri Dr. Ronald Kiandee, Minister of Agriculture and Food Industries (MAFI) handed over the mock cheque of ‘Dana Agromakanan Keluarga Malaysia’ to Dato’ Mustapha Buang, Chairman of Agrobank witnessed by YB Datuk Sri Haji Ahmad Hamzah, Deputy Minister of MAFI 1; YB Dr. Nik Muhammad Zawawi Haji Salleh, Deputy Minister of MAFI 2; YBhg Dato’ Haslina Abdul Hamid, Secretary General of MAFI and Khadijah Iskandar, Covering President / Chief Executive Officer of Agrobank.
According to Dr. Ronald, “The launch of this campaign is also timely with the National Agrofood Policy 2021-2030 (DAN 2.0) which aims to drive the development and modernisation of agrofood industries for the next 10 years and Agrobank therefore is committed to continuously support the DAN 2.0.”
“The ‘Dana Agromakanan Keluarga Malaysia’ will be channelled through two of Agrobank’s financing programmes namely, (i) Agromakanan (PENJANA), a financing assistance for entrepreneur under micro enterprise and B40 group with a total fund of RM50 million and maximum financing up to RM50,000 and profit rate as low as 3.5% per annum and (ii) Dana Pembiayaan Agromakanan (DPA), a financing specifically for agropreneur in food industry to increase local production and reduce imports with a total fund of RM60 million. The financing offers up to RM10 million financing with profit rate of 3.5% per annum (RM10,000 – RM5 million) and 4.75% per annum (RM5 million – RM10 million),” he added.
“During the campaign period, the Bank will offer the guarantee fee exemption for both Agromakanan (PENJANA) and DPA funds. This campaign is valid until the RM110 million is fully utilised or up to 31st December 2021, whichever comes first. Through this campaign, Agrobank is committed to support Small and Medium Enterprises (SMEs) and micro agropreneurs in Malaysia to ensure sustainability in agriculture sector and food industries as well as to stimulate the economy growth,” said Dr. Ronald.
Commenting on the campaign, Chairman of Agrobank, Dato’ Mustapha Buang said, “In Agrobank, we have a bigger aspiration to create greater financing accessibility within and beyond the agriculture sector in Malaysia and at the same time to maximise its potential. As one of the key economic enablers to bring greater economic inclusion, we are committed to design and bridge the unique needs of the community through our product innovations as well as to drive the industry to prominence in supporting the DAN 2.0.”
“Our nationwide footprint reflects our constant dedication to ensure widespread access to affordable financial services for marginalised communities whilst providing comprehensive financial solutions across the agriculture value chain and to support the nation food security agendas. Therefore, we believe that the fund from this programme will be able to assist the SMEs and micro agropreneur in managing their businesses,” added Mustapha.
Earlier this afternoon, YB Datuk Seri, Dr. Ronald Kiandee, YB Datuk Sri Haji Ahmad Hamzah, YB Dr. Nik Muhammad Zawawi Haji Salleh and YBhg Dato’ Haslina Abdul Hamid visited Agrobank headquarters to discuss on strategic plan in relations to the growth of nation’s agriculture and food industries sector.
