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Program TERAJU Smart Farming

TERAJU Smart Farming is a financing program that offers financing facilities to Bumiputera Small and Medium Enterprise (SME) entrepreneurs to implement modern and smart agriculture to improve the quality and quantity of agricultural output production.


  • The program aims to support the agenda envisioned by Unit Peneraju Agenda Bumiputera (TERAJU) which is one of the initiatives on Key Economic Growth Activity (KEGA) under Wawasan Kemakmuran Bersama (WKB2030) in modernization of agriculture to drive national economy. It also to strengthen the nation’s food production to endure the sustainability of food supply in future by using modern techniques and automation in agriculture industry. Therefore, the use of this modern and intelligent technique is a real potential for more productive and environmental sustainability and also to add value to agriculture products in Malaysia.


Shariah Concept

  • This program is based on the Shariah concept of Tawarruq


Eligibility Requirements

  • SMEs with at least 60% owned shares by Bumiputera registered under Malaysian law such as Companies Commission Malaysia (CCM)
  • Business activities is in agriculture sector with operations at least 12 months.
  • Non-individual with less than 12 months involvement in agriculture need to register with Suruhanjaya Syarikat Malaysia (SSM) to be entitled for this financing under contract farming model with an anchor company involved (if applicable)
  • The owners/partners/directors/shareholders of the business entities must be between 18 years old (at the date of application) up to age of 60 years old (at the maturity of financing)
  • The expansion of the business with the use of technology must be able to improve productivity of the agriculture sector.
  • Not a subsidiary of a Government-Linked Companies (GLC) or Multinational Companies (MNC)
  • The company is not declared bankrupt or has no legal action that allows for bankruptcy action.
  • Business activities must be Shariah compliant.


Scope of Financing

  • To finance capital expenditure (CAPEX) and operating expenditure (OPEX) along the agrofood value chain
  • Project carried out with the use of technology that increases the production with higher quality compared to conventional methods.


Financing Limit

  • RM50,000 (Minimum) up to RM1,000,000 (Maximum) per application.


Tenure of Financing Facility

  • Maximum tenure is 10 years (120 months) including up to 3 years (36 months) of Grace Period, if necessary.


Types of Financing Products

  • Term Financing-i
  • To provide financing for capital expenditure but not limited to the purchase of technological equipment, procurement such as materials for the industry involved.


  • Working Capital-i
  • To provide financing for managing expenses but not limited to the cost of purchasing seeds, fertilizers, maintenance, and utility systems, employee salaries, overhead costs and others related to farm operations.


Profit Rate

  • Term Financing-i: BFR+0%
  • Working Capital-i : Subject to the profitability rate of the product.

Frequently Asked Questions (FAQ)

Program Disclosure Sheet