Agrobank Optimist Fund Will Tackle National Food Security Woes

Agrobank is confident that the allocated fund through the DPAKM programme, will be distributed accordingly to the needs of the main food industry players

Agrobank Optimist Fund Will Tackle National Food Security Woes

KUALA LUMPUR, June 26 -- Agrobank welcomes the mandate by the Government to support the nation’s agriculture and food industry in strengthening the food production sector through the Keluarga Malaysia Agrofood Financing Fund (DPAKM), announced by the Minister of Agriculture and Food Industry, Datuk Seri Dr Ronald Kiandee on Wednesday.

The Cabinet meeting on 22 June 2022 agreed on the implementation of the DPAKM programme under Agrobank with a total allocation of RM800 million fund, to ensure the continuity of national food production activities involving eight (8) major food commodities namely chicken, beef/buffalo, eggs, milk fresh, fish, fruit, vegetables, and rice.

The DPAKM programme offers special financing facility, which is to be distributed accordingly, where RM300 million is allocated for poultry, RM200 million for ruminant (cattle and goats), RM100 million for vegetable crops. The DPAKM programme also offers financing for entrepreneurs with an allocation of RM100 million for micro-entrepreneurs, while new micro-entrepreneurs and young entrepreneurs each to receive a financing distribution of RM50 million.

Elaborating further on the announcement, Tengku Ahmad Badli Shah Raja Hussin, President/Chief Executive Officer of Agrobank said, the DPAKM programme is a financing facility offered to Small and Medium Enterprise (SME) entrepreneurs with a total financing of up to RM5 million for entrepreneurs and producers of poultry, ruminant, and vegetable crops.

“This programme offers a competitive financing period of up to 8.5 years at a profit rate of as low as 3%. In the first six (6) months, Agrobank will automatically grant a moratorium at a profit rate of 0%. Customers will start being charged a profit rate as low as 3% only in the 7th month of financing and onwards,” he said this in a statement.

Food security

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He added that Agrobank is confident that the allocated fund through the DPAKM programme, will be distributed accordingly to the needs of the main food industry players, and will be able to meet current needs and gradually strengthen the country's food security position.

“Agrobank is pleased to continuously be entrusted by the Government, to lead the nation’s agricultural sector through our Shariah-compliant financing products and financial solutions to meet the needs of the agricultural communities including those carrying out upstream activities and up to downstream activities. Agrobank's ongoing efforts through our full-chain financing programs are in line with the National Agro-Food Policy which aims to increase the Self-sufficiency Level (SSL) of food," he added further.

Tengku Ahmad Badli Shah said, Agrobank is very optimistic in supporting the National Agro - Food Policy, "We are moving in-line with the mandate and planning of the Government and Ministry of Agriculture and Food Industry (MAFI) in particular, to develop several strategic plans as a solution to the issue of food security crisis in the country.”

Speaking on how Agrobank's plans in dealing with the current issue, he said, Agrobank in 2021 launched its Strategic Business Plan (SBP) 2021-2025 which also covers the short-term and long-term strategic development of MAFI for the agro-food sector as stipulated by the latest National Agro-Food Policy.

“Our short-term efforts are focused in supporting the country's food security agenda by directly providing financing support in strategic agricultural sub-sectors such as livestock, poultry, and vegetable enterprises. While in its long-term efforts, the bank is committed in uplifting financial literacy knowledge among the unserved and the underserved communities through free monitoring, including programs on business knowledge and financial management,” he said.

Agrobank has always and will continue to support the strategic objectives formulated under the national agricultural development policies, which drive the strategic direction of agrofood and agricultural commodity development, while providing 'Beyond Banking' services to its customers in the agricultural sector, said he.