Agrobank Signs RM15 Million Agreement To Empower Contract Farming Agricultural Financing Program

SERDANG, 12 SEPTEMBER 2024 – Agrobank and FGV Holdings Berhad (FGV) today signed a strategic agreement to launch the Contract Farming Agricultural Financing Program. This initiative, implemented through FGV’s subsidiary, FGV Integrated Farming Holdings Sdn Bhd (FGVIF), allocates RM15 million in financing specifically for FGVIF’s contract farmers. The program will be deployed by FGV at its Chuping Agro Valley in Perlis to cover farm operational expenses.

According to Agrobank’s President/Chief Executive Officer Dato’ Tengku Ahmad Badli Shah Raja Hussin, “The strategic collaboration between Agrobank and FGVIF opens up opportunities for prospective or existing farmers to obtain financial assistance to succeed in pineapple cultivation. Agrobank offers financing of up to RM500,000 for each eligible participant. This maximum financing limit creates broad prospects for agro-entrepreneurs to intensify their crop operations, invest in modern technology, and increase productivity.”

He also said, “The pineapple industry in Malaysia has great potential and needs to be explored. Moreover, high demand from international markets should be the main driver for our country to increase pineapple production and exports. Therefore, through Agrobank’s financing and support, we aim to attract more agro-entrepreneurs into this sector, thereby driving the country’s economic growth through increased pineapple exports.”

“The strategic collaboration between FGVIF and Agrobank in the FGV Agro Rangers program provides a financing fund of RM15 million to help expand the businesses of potential farmers. FGV is committed to empowering local farmers through innovative initiatives like this program. Together, we are building a sustainable agricultural future, not only by enhancing the capabilities of local farmers but also by contributing to the national food security agenda,” said Dato’ Mohd Hairul Abdul Hamid, Acting Group Chief Executive Officer of FGV.

FGV is one of the main food producers in Malaysia, aiming to play an important role in the national food security agenda by producing high-quality and nutritious food products at affordable prices for all Malaysians. FGV is always committed to meeting the increasing demand for quality, nutritious, and affordable products in the market through various consumer goods brands such as LADANG’57, BRIGHT COW, SAJI, SERI PELANGI, and GULA PRAI.

The official memorandum of understanding was signed by Agrobank’s President/Chief Executive Officer, Dato’ Tengku Ahmad Badli Shah Raja Hussin, alongside Abdul Razak Aya, Head of FGV Integrated Farming. This formal ceremony took place at MAEPS Serdang during the Malaysian Agriculture, Horticulture, and Agro-tourism Exhibition 2024 (MAHA 2024).

Through this Contract Farming Agricultural Financing Program, Agrobank is committed to ensuring that farmers and smallholders are not left behind in the revolution and development of the agricultural industry while fostering inclusive agriculture.