World Food Day 2020: Agrobank Stands Tall to Beef Up Food Security in Malaysia through its Financing Programmes
KUALA LUMPUR – In conjunction with World Food Day which takes place on 16 October 2020, Agrobank stands united with its global agro allies – agropreneurs, farmers, regulators, scientist and the whole components in the entire food chain system; in improving access to safe and nutritious food and maintaining food security in times of crisis to ensuring the prospects of future generations.
Therefore, Agrobank pledges to continue playing its role in contributing to building food systems that can feed everyone, everywhere, every day by improving food security, and improving food safety through its wide range of financing programmes.
Covering President/ Chief Executive Officer of Agrobank, Khadijah Iskandar said although in Malaysia we are not in any food security crisis, she believes that we still need to prepare and treat COVID-19 as a ‘wake-up call’ for us to act fast.
“Malaysia remains dependent on food imports, but initiatives to be less reliant on certain food products and constant monitoring on food prices can help ensure food security, particularly in times of crisis.”
“Hence, as a bank that understands agriculture better, Agrobank is committed to continuously provide a comprehensive financing solution for agriculture community that includes financing for upstream activities such as the supply of agricultural production inputs to downstream activities such as processing and selling of agricultural products to consumers,” she added.
Currently, Agrobank has two financing programmes which focuses on beefing up food security in Malaysia and also to building resiliency into Malaysia’s long-term food security.
Through Dana Agromakanan under PENJANA, the RM350 million has been set up to ensure the viability of agriculture and food commodities entrepreneurs.
The fund is available to be applied by all eligible agriculture and food sector entrepreneurs, including in Sabah and Sarawak, through the Agrobank Financing Micro-Credit Scheme. Through this programme, financing facility is up to RM50,000 per entrepreneur for up to five years at a rate of 3.5 per cent and no collateral is required.
Apart from Dana Agromakanan, through Bank Negara Malaysia (BNM), with a total allocation of RM1 billion, Agrobank also offers Agrofood Facility (AF) fund which aims to help SMEs to increase food production for Malaysia and for export purposes.
Under this financing programme, eligible SMEs can obtain a financing of up to RM150,000 for a tenure of up to eight years. The financing profit rate is up to 3.75% per annum (inclusive any guarantee fee, if any).
Through its varies financing programmes for agribusiness, Agrobank urges the agropreneurs to take these opportunities to raise capital for their existing businesses and at the same time to encourage more people to venture into agrofood business by obtaining their start-up capital with Agrobank.
Commenting on World Food Day celebration, Khadijah said, “This year, on the World Food Day (16 October), let’s celebrate our food heroes – the farmers and many others along the agricultural or food value chain, who have worked tirelessly to bring food from the farm to the table.”
“Agrobank salutes these unsung food heroes for their tireless contribution to ensure our food security. We are proud to support their dreams by financing their agribusinesses. Our financing is available across the full value chain of agriculture; from small businesses to SME and corporate.”
Interested individuals and businesses may contact Agrobank’s Customer Service Center at 1-300-88-2476 or visit the nearest branch for enquiries and information on the Agrobank’s financing programmes.
