02-08-2025
RM200 million Agrofood Financing Fund launched
Published on: Saturday, August 02, 2025
Published on: Sat, Aug 02, 2025 Text Size: Arthur witnessing the exchange of strategic cooperation agreement documents between Agrobank represented by Agrobank Group Chief Operating Officer, Zahid Ahmad Zawawi (right), and TM One represented by TM One's Vice President of Enterprise Business, Megawati Norhashim (second, left). Kota Kinabalu: The Agrofood Financing Fund (DPA) 2025, involving RM200 million, was launched Friday with Agrobank appointed as the implementing agency to further strengthen Malaysia's agrofood sector. Deputy Minister of Agriculture and Food Security Datuk Seri Arthur Joseph Kurup said the fund is designed to enhance national food security and support the long-term sustainability of the country's agricultural and agrofood industries by providing financing facilities to agro-entrepreneurs. 'This programme aims to support entrepreneurs involved in agricultural and agrofood production, covering activities across the entire value chain — from upstream to downstream — including support services. I believe this will greatly benefit grassroots-level entrepreneurs. 'The fund provides financing for both fixed capital, such as asset acquisition and development costs, and working capital, to meet the operational needs of agro-industry players,' he told reporters after launching the fund in conjunction with the National Farmers, Stockbreeders and Fishermen's Day 2025, here, Friday. Also present were the Ministry of Agriculture and Food Security Secretary-General Datuk Seri Isham Ishak, Agrobank Chairman Datuk Yunos Abd Ghani and Agrobank Group President/Chief Executive Officer Datuk Tengku Ahmad Badli Shah Raja Hussin. Arthur said Agrobank will carefully assess each application to determine eligibility, based on pre-established conditions and project scopes. 'At this stage, we do not yet have the number of recipients, as Agrobank will first evaluate all submitted applications. Only then will we determine who qualifies and how many applicants are eligible for the fund,' he said. The DPA fund offers financing ranging from RM50,000 to RM5 million for eligible agro-entrepreneurs, with a profit rate of three per cent per annum. Meanwhile, Arthur said Agrobank and TM One have entered into a strategic collaboration to enhance the bank's digital infrastructure. The partnership aims to improve the efficiency and reliability of Agrobank's financial services, including ATMs, CDMs and online banking, through improved internet connectivity and digital solutions. 'This is a strategic move to accelerate Agrobank's digitalisation and provide a more seamless customer experience, especially for rural communities and farmers who rely on its services,' Arthur said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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