Agrobank Committed In Supporting The Countryâ€™s Agriculture Sector
Kuching, Sarawak â€“ Agrobank will remain committed in supporting the mandate of developing the agricultural sector, stressed Datoâ€™ Wan Mohd Fadzmi bin Wan Othman, President / Chief Executive Officer, when approached by the media during his working visit to Sarawak.
According to him, Agrobank, which is a Development Finance Institution (DFI) has been mandated by the government to develop the agricultural sector by providing financing and credit facilities primarily to agriculture entrepreneurs. Since its inception in 1970, Agrobank has been providing banking services to the unserved and underserved in the rural or remote areas
â€˜For 44 years, Agrobank has played an important role in providing financing for the agriculture sector in Malaysia. For agricultural financing segment, Agrobank contributed 10.2%, which includes RM 3.6 billion from the total of RM 31.7 billion agricultural finance market in 2013 .
As a Bank that understands agriculture, Agrobank will continue to provide comprehensive financing (holistic) and include full chain financing from upstream activities such as the supply of agricultural production inputs to downstream activities such as processing and selling of agricultural products to consumers.
In Sarawak, Datoâ€™ Wan Mohd Fadzmi said the number of Agrobankâ€™s customers increases in tandem with the increase in the agricultural activities, farming and fishing. According to him, Agrobank in Sarawak has recorded encouraging achievements whereby more than RM100 million in new funding has been approved as at July 2014.
New Financing Products
In line with its efforts to provide comprehensive financing, Agrobank has introduced more new products specifically for agriculture financing. One of the products is Machine and Equipment Financing (MAEF-i), which was launched on 16 August 2014 in Kedah. This financing was introduced specifically to facilitate the farmers and agricultural entrepreneurs to have the necessary machinery at a very competitive and affordable rate.
Agrobank has also launched Trade Finance facility on August 19 which was officiated by YB Datoâ€™ Sri Ismail Sabri bin Yaakob, Minister of Agriculture and Agro-based Industry. This product is designed to facilitate Small Medium Industries (SME) and commercial and corporate customers to obtain short-term working capital financing for both local and foreign transactions. This will help the entrepreneurs in agro-based industries to expand their businesses and penetrate the global market effectively. With the launch of this facility, Agrobank will be the first DFI in Malaysia to offer its own trade finance.
At the same ceremony, Datoâ€™ Wan Mohd Fadzmi also informed that Agrobank will operate full-fledged Islamic banking in 2015.
â€œAgrobank is actively carrying out the conversion process of financing and conventional deposit accounts to Shariah-compliant products. The Bank hopes that with this transformation, our customers will feel more confident using our financing and deposit products that comply with the Shariah principlesâ€, said Datoâ€™ Wan Mohd Fadzmi.
Accompanying Datoâ€™ Wan Mohd Fadzmi in the ceremony were Mr Asmuni bin Sudin, Chief Financial Officer, Mr. Mohd Jamani Madoria, Regional Manager (Sarawak), Mr. Mohammad Tony Ong, Head of Commercial Business Agrobank (Sarawak) and other Agrobankâ€™s officers.