Agrobank Commends Government’s Commitment to Strengthen the Agriculture Sector and Food Security

Agrobank commends and fully supports the Government’s continued commitment to strengthening Malaysia’s agriculture and food security agenda, as announced by YAB Dato’ Seri Anwar Ibrahim, Prime Minister of Malaysia, during the presentation of Budget 2026.

Group President / Chief Executive Officer of Agrobank, Dato’ Tengku Ahmad Badli Shah Raja Hussin expressed his appreciation, stating, “We are grateful to the Prime Minister for prioritising agro entrepreneurship with substantial allocations this year, aligning with our shared vision to enhance agricultural activities and fortify the nation’s food value chain. The significant investment in agriculture and food security under Budget 2026 represents meaningful recognition of this vital sector.”

He further noted, “Budget 2026 has allocated RM1.1 billion for Agrobank to support agropreneurs in expanding their operations while advancing automation and mechanisation. This substantial funding will not only empower industry players but also boost productivity and ensure the agricultural sector as a pillar of national food security”

“The Agropreneur NextGen Programme under the Ministry of Agriculture and Food Security (KPKM) provides start-up and project expansion grants totalling RM20 million for agricultural projects. We strongly support the Government’s proposed 100 per cent income tax exemption on statutory income for companies launching new food production ventures, valid for 10 years.”

“Additionally, existing companies pursuing expansion projects will receive a 100 per cent income tax exemption on statutory income for 5 years. To promote automation and enhance crop yields, the Government plans to extend agricultural automation tax incentives covering plantation, livestock, apiculture, aquaculture and deep-sea fisheries
to include selected livestock farming operations using closed housing systems,” he explained.

As a development financial institution, Agrobank remains committed to partnering with the government to advance this critical sector. Our mission extends beyond providing financing. We are dedicated to supporting livelihoods and building sustainable futures. Budget 2026 represents more than figures; it embodies hope and opportunity for farming communities throughout the agrofood sector.