Agrobank 2024: Beyond Business as Usual

2024 was a landmark year for Agrobank, in which we achieved a historical high of RM10.44 billion for disbursements and recorded exceptional performance across all sectors. Our disbursements showed significant growth of 25.46% YoY, surpassing last year’s growth of 15.97%, reflecting our unwavering support towards the development of Malaysia’s agriculture sector.

The total financing portfolio expanded by RM1,207.35 million, marking an impressive 72.08% increase over the growth achievement in 2023, driven by historical high performances achieved by 3 major business segments – SME segment, closing at RM547.68 million (161.08% above target), Ar-Rahnu segment with RM186.92 million (155.76% above target) and micro segment with RM181.21 million (100.67% above target). Our deposit balance also showed healthy growth to RM13.25 billion, the highest in five years. Our strong performance in deposit taking activities is reflected in our CASA ratio which stood at 44% over total deposits, outperforming the banking industry’s average at 31%.

Total income maintained its positive trajectory, reaching RM1.26 billion with 9.32% YoY growth – the highest in the last three years. This achievement was enabled by steady growth in financing and ancillary income from investments (up by 22.8%), recovery efforts (up by 9.67%), as well as fee-based income (up by 9.95%).

Empowering Communities Through Financial Inclusion

A major milestone was achieved in September 2024 with the operationalization of Agrobank’s first subsidiary, Agro Captive Takaful Limited (ACTL) and the launch of Malaysia’s first ever crop takaful program – Skim Takaful Tanaman Padi – to support the protection needs of paddy farmers. As of December 2024, ACTL has facilitated the onboarding of over 130,000 paddy farmers to open deposit accounts and enrolled 50,000 farmers into the paddy takaful scheme.

The bank has inked a strategic collaboration with Unit Peneraju Agenda Bumiputera (Teraju) under the Bumiputera Expansion & Catalyst Fund (BECF), of which funds of RM100 million are allocated to high-growth Bumiputera companies for business expansion, investment in new technology and creation of new employment opportunities. It is anticipated that 20 companies, each with an average financing limit of RM5.0 million, will benefit from this partnership. In addition, we also launched a new branch format called the Community Development Center at RTC Tunjung, with the intention of providing advisory services to the agriculture community, beyond the provision of basic transaction-related services. The concept was well-accepted as we received over 200 enquiries, 81 applications, 40 approvals and RM3.97 million disbursed in its first six months of operations.

Agrobank Center of Excellence (ACE), our in-house training arm delivered 110 training programmes nationwide, reaching 2,675 participants across the agricultural community. Through these programmes, we successfully onboarded 528 participants as Agrobank customers. The Young Agropreneur programme was notably impactful, creating business opportunities worth RM4.8 million for 157 asnaf and B40 participants. As of January 2025, these participants have generated nearly RM450,000 in revenue from 10 projects, with 6 new projects underway. This programme achieved a 100% conversion rate, with all 157 participants establishing formal banking relationships with Agrobank, underscoring our commitment towards nurturing the next generation of agropreneurs and supporting sustainable livelihood of rural farmers.

In line with our mandate to uplift the wellbeing of the agricultural community, ACE has effectively mentored and supported 120 entrepreneurs from low-income and asnaf groups through a series of Hijrah Asnaf Programmes implemented across Malaysia. Each participant recorded an average monthly income of RM3,000 across 10 different programmes. Aside from training, we also provided home financing solutions via Programme Kediaman Mampu Milik-i, that benefitted 653 families, mainly from the B40 income group.

Strengthening Bumiputera Empowerment

In 2024, financing disbursements for Bumiputera entrepreneurs were predominantly provided to the SME segment – RM222.97 million (40%), followed by the Corporate segment at RM209.84 million (38%) and the Micro segment at RM121.47 million (22%). Within the SME segment, the support sector received the largest disbursement at RM96.38 million, while the livestock sector received RM54.08 million. As for the Corporate segment, RM201.83 million was disbursed to the agro-based processing sector.

Digital Innovation and Campaign Success

A major digital initiative launched in 2024 was Agrobank’s improved mobile account opening system – AgroTouch, which reduces account opening and debit card issuance time from 30-45 minutes to just 5 minutes. This contributed to a significant improvement in new accounts opened (627,139) for the unserved and underserved communities, far exceeding our annual target of 350,000. In development, is a self-service version of this system, which would allow customers to complete the online account opening process in 10 minutes without the need to visit a branch. This is expected to be launched in 2025. In addition, we have successfully implemented Robotic Process Automation (RPA) to optimise key internal processes and utilisation of resources, resulting in more than 50% FTE savings.

In 2024, we actively ran educational campaigns to promote digital literacy among the agricultural community, particularly in rural areas. Overall, the volume (10.23 million transactions) and value (RM10.53 billion) of digital transactions have increased substantially over the last three years. For example, AGRONetBIZ recorded 890k transactions (32% YoY growth) and QR incoming POS transactions soared to 4.16 million (247% YoY growth). Additionally, we have surpassed several targets: DuitNow QR implementation exceeded target by 192%, AgroCash-i raised RM1.87 billion via the Mega Million 1.0 campaign (312% above target), deposits increased to RM290.36 million (138% above target) and Takaful transactions reached RM20.64 million (105% above target).

Enhanced Community Impact

Among the key focus areas for our Corporate Social Responsibility programmes in 2024, were improving financial literacy amongst the agriculture community and enhancing the public’s awareness on the latest agricultural practices and technological developments.

A total of 125 financial literacy programmes were conducted, benefiting 4,612 participants across various age groups and demographic segments, of which 1,186 comprised of youths. One memorable highlight was The Aquaculture Aspire programme, which introduced bio-floc technology for Tilapia cultivation in 10 selected schools nationwide, targeting Special Education Classes with neurodiverse students. This initiative helped neurodiverse youth gain practical aquaculture skills, promoting educational inclusion and sustainable food production.

As a result of our structured developmental programs for the agriculture sector and community, we recorded significant achievements in upward migration, of which 13% of our program participants reported an increase in income, 16% transitioned from informal to formal business entities, 26% received micro-startup funding and 45% improved their credit ratings, thereby enhancing their access to financial services. Our efforts resulted in positive spillover effects on the broader economy, creating and sustaining 3,879 jobs through our customers’ businesses in FY2024, including 1,940 new positions filled through business expansion.

Recognition and Awards

Agrobank’s efforts and achievements have not gone unnoticed in 2024, as we have
received numerous awards such as the Malaysia Public Relations Award, Public Affairs Award for the Program Rakan Tani Muda, several consumer and digital campaign awards and the Anugerah Gangsa at Anugerah Integriti, Governans and Antirasuah (AIGA). In recognition of our efforts to improve office safety and health administration, we also received the Anugerah Khas Keselamatan dan Kesihatan Pekerjaan.

We have also enhanced our attractiveness as an employer, as we now rank among the Top 5 in the Banking Sector at the Talentbank Graduates’ Choice Award and achieved 34th place out of 1,048 employers in the GRADUAN Brand Award. Our Employee Satisfaction Survey showed an admirable score of 85%, beating the Worldwide Global Norm (77%), overall Malaysia Norm (77%) and the Global Financial Services Norm (78%). This demonstrates our commitment to cultivating an inclusive and collaborative workplace culture, which not only boosts employee satisfaction but also drives higher productivity and financial performance.

Beyond 2024

Agrobank remains steadfast in executing our mandate as the nation’s agricultural development financial institution, charting the path to drive agricultural growth and resilience through innovative financial solutions, digital transformation and sustainable agricultural practices.

As we advance into 2025, we are intensifying our efforts across four interconnected areas. First, we will expand our initiatives to catalyse the modernisation of the agriculture sector through affordable financial solutions and programs, which would encourage the adoption of smart farming technologies, precision agriculture systems and Industry 4.0 capabilities. Second, we will deepen our commitment to financial inclusion by exploring the expansion of takaful solutions to agricultural sectors beyond paddy and enhancing our service offerings to achieve greater reach. Third, we will continue to foster the transition of the agriculture sector towards more sustainable activities and integrate climate risk assessment into our core lending practices. Finally, we are committed to attracting and nurturing diverse talent who will continue to advance Agrobank’s developmental agenda in the agriculture sector. Through these strategic priorities, Agrobank aims to catalyse a more resilient, inclusive and technology-driven agricultural sector while ensuring environmental stewardship and community development remain central to our mission.

Note: All figures and statistics mentioned are based on performance data for the financial
year ended 31 December 2024 (FY2024), unless otherwise stated.