PANDEMIC IS A WAKE-UP CALL TO IMPROVE FOOD SECURITY, SAYS AGROBANK COVERING PRESIDENT

KUALA LUMPUR, Oct 16 -- Amid the global COVID-19 pandemic, Agrobank will continue to contribute towards the development of sustainable food systems by improving food security via its financing programmes.

In a statement today, its covering president and chief executive officer, Khadijah Iskandar, said although Malaysia is not facing any food security crisis, there is a need to treat the pandemic as a wake-up call to expedite preparatory action. 

“Towards achieving food self-sufficiency, Malaysia should not be overly reliant on certain food products; and constant monitoring of food prices can also ensure food supply particularly in times of crisis,” she said.

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In a bid to ensure the sustainability and viability of agricultural commodity and food entrepreneurs, the government has set up a RM350 million micro-credit financing facility for agropreneurs through the National Economic Recovery Plan (PENJANA).

The financing is being extended to agropreneurs (including commodity players) under Agrobank’s micro-credit financing scheme with an interest rate of 3.5 per cent per annum. The maximum loan size is RM50,000 and the loan tenure is five years while no collateral is required.

Agrobank also offers an Agrofood Facility financing scheme to help small and medium enterprises (SMEs) to increase food production for the domestic and export markets.

Under this programme, eligible SMEs can obtain financing of up to RM150,000 for a tenure of up to eight years. The financing profit rate is up to 3.75 per cent per annum (inclusive any guarantee fee, if any).

“Through these financing initiatives, agropreneurs should take the opportunity to raise capital for existing businesses and encourage more people to venture into the agro-food business by obtaining their start-up capital from us,” the bank said.

Meanwhile, in conjunction with World Food Day, which is celebrated globally on Oct 16, Khadijah said the bank stood united with the global agrocommunity in increasing access to safe and nutritious food and ensuring food security for future generations.

“We are proud to support their agribusiness dreams. Our financing is available across the full value chain of agriculture, from small businesses and SMEs to corporations,” she said. 

-- BERNAMA