Agrobank, MAFI announce RM110 mil financing campaign for SMEs, micro agropreneurs

Agrobank, MAFI announce RM110 mil financing campaign for SMEs, micro agropreneurs
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KUALA LUMPUR (Oct 28): Agrobank, in collaboration with the Ministry of Agriculture and Food Industries (MAFI), has allocated RM110 million to support small and medium enterprises (SMEs) and micro agropreneurs.

In a statement on Thursday, Agrobank said the fund had been allocated through a financing campaign called Dana Agromakanan Keluarga Malaysia in line with the Keluarga Malaysia (Malaysian Family) concept.

It said the fund was set up to ensure the sustainability of agricultural and food industries while also stimulating economic growth.

MAFI Minister Datuk Seri Dr Ronald Kiandee handed over the campaign’s mock cheque to Agrobank chairman Datuk Mustapha Buang at Agrobank headquarters recently.

Kiandee said the launch of this campaign coincides with the National Agrofood Policy 2021-2030 (DAN 2.0), which aims to drive the development and modernisation of agro-food industries for the next 10 years, and Agrobank has pledged to continue supporting the DAN 2.0.

“It will be channelled through two of Agrobank’s financing programmes. The first is Agromakanan (PENJANA), which includes financing assistance for entrepreneurs under microenterprise and the B40 group with a total fund of RM50 million, maximum financing up to RM50,000 and profit rate as low as 3.5% per annum.

“The second is the Dana Pembiayaan Agromakanan (DPA) financing, specifically for agropreneurs in the food industry to increase local production and reduce imports with a total fund of RM60 million,” he said.

The financing offer is up to RM10 million with a profit rate of 3.5% per annum (RM10,000-RM5 million) and 4.75% per annum (RM5 million-RM10 million), said the Minister.

The bank will waive the guarantee fee for both Agromakanan (PENJANA) and DPA funds during the campaign period.

The campaign is valid until the RM110 million is fully utilised or up to Dec 31, 2021, whichever comes first.