Agrobank of Malaysia
Boosting agriculture microfinance
The Malaysian government is looking to make small and medium entrepreneurs out of traders — and Agrobank is playing its part in turning this vision into a reality. Agrobank had already provided microfinance of RM279 M to 27,900 traders. Agrobank expanded its product lines through collaborations with agencies in the Agricultural and Agro-based Industry Ministry, securing targeted clients by groups.
Its range of financing schemes also specifically caters to graduates for an alternative career development in agriculture; Bumiputera or Malay ethnic group members; and youth seeking to embark on a full-time business venture.
Under the bank’s microfinancing scheme, farmers, breeders, fishermen and others, such as restaurants and snack food operators, are able to meet their fixed and working capital with financing of between RM 1,000 to RM 50,000 (USD255 to USD12,790). They can use their approved funding for different areas of their operations — from production and processing to service delivery and marketing.
With agriculture’s various vulnerabilities – from natural calamities to investment woes — there is a prevalent reluctance in financing the sector that needs to be overcome.
Agrobank has been a pioneer in various forms of financing for the agricultural sector since 1969. It also boasts of an extensive network in rural areas, where it can most radically affect change in its customers’ livelihood and business.
Long-term commitment and concerted efforts from institutions such as Agrobank, as well as national agencies, local governments, and farmers themselves, may help the trade hurdle such boundaries and alleviate rural poverty.
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