01-08-2025
Agrobank allocates RM200 million for Agrofood Financing Fund 2025
Arthur (back) witnessing Tengku Ahmad (left) handing over the DPA 2025 to KPKM Business Development and Investment Division Secretary Khalid Ibrahim.
KOTA KINABALU (Aug 1): Agrobank has earmarked RM200 million for its Agrofood Financing Fund (DPA) 2025 to support national food security and promote the long-term sustainability of Malaysia's agricultural and agrofood sectors.
The fund provides financing facilities to farming communities engaged in agricultural and agrofood production activities — ranging from upstream to downstream — including related support services. The goal is to encourage the adoption of agrotechnology and enhance the resilience of the agrofood industry.
Agrobank Chief Executive Officer Dato Tengku Ahmad Badli Shah Raja Hussin said the bank, as the implementing agency, offers financing between RM50,000 and RM5 million to eligible agricultural entrepreneurs at a profit rate of just three percent per annum.
'The financing covers fixed capital needs such as asset purchases and development costs, as well as working capital,' he said. 'It also supports the entire agrofood value chain, including food production like planting, farming and fishing, along with processing, distribution, marketing, and food preparation services.'
Tengku Ahmad said the initiative reinforces Agrobank's role as a development financial institution (DFI) committed to providing inclusive, sustainable and accessible financing to farming communities and agro-industry players.
'This effort is aligned with the government's aim to boost the competitiveness of the nation's agri-food sector,' he added.
The handing over of the DPA 2025 was witnessed by Deputy Agriculture and Food Security Minister Datuk Seri Arthur Joseph Kurup during a ceremony held at the Sabah International Convention Centre here today.
