Agrobank signed two memorandums of understanding (MoUs) with Mydin Mohamed Holdings Berhad (Mydin) and Pertubuhan Peladang Kebangsaan (PPK) Kuala Langat last week.
The signing were witnessed by Datuk Salahuddin Ayub, Minister of Agriculture & Agro-Based Industry and Tan Sri Mohamad Zabidi Zainal, Chairman Board of Directors of Agrobank and guests in conjunction with Malaysia Agriculture, Horticulture and Agrotourism Show 2018 (MAHA 2018) organised by Ministry of Agriculture & Agro-Based Industry (MOA).
Agrobank is providing group funding to assist participants under Program Pelepasan Pemasaran Bersepadu Agropreneur Muda Ternakan by PPK Kuala Langat.
Agrobank will be assisting the participant particularly those who under B40 and M40 group by providing working capital financing to purchase ruminants from suppliers that are registered under PPK Kuala Langat.
This is to ensure production of ruminant is enough to cater the market demand especially during the peak season of Aidiladha celebration.
Through this programme, Agrobank offers a minimum financing of RM3,000 - RM300,000 and profit rate as low as 3.75% per annum for period of 5 years.
According to Syed Alwi Mohamed Sultan, President/Chief Executive Officer of Agrobank (P/CEO), the collaboration between Agrobank & PPK Kuala Langat is to provide financing solutions for agropreneurs through affordable capital management.
It is hope that this initiative will aid the agropreneurs in expanding their ruminant businesses. This programme is one of Agrobank focuses to support government initiative to increase the food productions in the country.
As for the other MoU, Agrobank established a strategic collaboration with Mydin to provide financing facilities and banking services to Mydin and its vendor in their supplier chain.
Through this MoU, Agrobank will provide suitable financing packages to Mydin vendor in supporting its operations and business value chain activities.
“This programme is a platform to increase the visibility of small and medium entrepreneurs (SME) in the market and to ensure their business is sustainable along the value chain and at the same time to assist them to grow their business in the modern retail industry. From this initiative, we hope it may encourage SMEs in agri-business to play a bigger role in Malaysia’s food production industry. Through this arrangement, it indirectly provides wider variety and range of agro product offerings to benefit Mydin’s customers,” said Syed Alwi.
At the same event, Agrobank also launched the latest publication book entitled “Terokai Potensi Industri Sayur-Sayuran Malaysia”. The publication provides various related information about vegetable-based business and the business potential of different type of vegetables produced in the country.
This publication is suitable for young entrepreneur who plans to start their agri-business in this industry.