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@ AGROBiz | JANUARY-FEBRUARY . 2024 |
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resilience against climate-related risks .
EMBRACING TECHNOLOGY AND YOUTH INVOLVEMENT
Agrobank recognises the transformative potential of technology and innovation in bolstering agricultural productivity and resilience .
According to Tengku Ahmad , this shift is evident in current practices like greenhouse farming , where climate and fertilisation are controlled using accurate timing , leading to increased efficiency and reduced human interference .
“ By integrating advanced technological methods in agriculture , such as Internet of Things ( IoT ) integration and modernisation , Agrobank aims to mitigate reliance on manpower and weather-dependent agricultural practices .”
Tengku Ahmad also highlighted that , historically , agriculture was perceived as dirty , dangerous , and difficult work . However , technological advancements have transformed this perception by transferring these challenges to technology .
“ This shift not only simplifies and enhances safety in farming but also maximises production efficiency .
“ Integrating technology into agricultural practices makes farming more appealing to young talents and entrepreneurs .
“ The agriculture sector is witnessing increased interest from younger demographics , including college graduates and entrepreneurs , who recognise its potential as a promising career path .”
BALANCING PROFITABILITY AND SOCIAL RESPONSIBILITY
Tengku Ahmad emphasised that as a DFI , Agrobank upholds its mandate to promote economic growth while supporting social development .
Emphasising sound agriculture development , Agrobank prioritises initiatives that enhance food security , modernise agriculture practices , and foster sustainable agriculture . By providing credit and capacity-building programs , Agrobank serves households , SMEs , and giant cor-
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porations , ensuring financial inclusivity .
Agrobank also acts as an enabler to support the Ministry of Agriculture and Food Security ( KPKM ) in its national agriculture agenda to provide financing services that have multi-pronged objectives , namely :
• Support food security and the reduction of import dependencies
• Modernisation and technological adoption
• Sustainable agriculture practices
• Sectoral development ( eg upstream activities for low SSL , midstream and downstream for high SSL , high potential sectors e . g . pineapple , durian and coconut ) Agrobank , in performing its mandate , ensures financial sustainability by strengthening its consumer offerings and exploring new revenue streams , i . e . expansion into new consumer segments , as well as operationalising its first crop takaful program and alternative investment solutions .
It distinguishes itself through low-cost funds , support for agriculture startups , and strategic partnerships for financial and developmental activities .
The establishment of the Agrobank Centre of Excellence ( ACE ) further enhances Agrobank ’ s position as a leader in agriculture finance , providing comprehensive financial , technical , and entrepreneurial advisory services .
PROSPECTS AND KEY INITIATIVES FOR 2024
Amidst Malaysia ’ s pursuit of food security and economic growth , the agriculture finance industry in 2024 holds promising prospects , said Tengku Ahmad .
“ The National Agrofood Policy 2021- 2030 , 12th Malaysia Plan , and Shared Prosperity Vision 2030 set the stage for robust growth in the sector .
“ Agrobank , in alignment with these policies , channels RM1 billion through the Agrofood Financing Scheme , supporting activities across the agriculture value chain . This includes financing agrofood segments , agro-based manufacturing , and wholesale sub-sectors .”
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“ By integrating advanced technological methods in agriculture , such as Internet of Things ( IoT ) integration and modernisation , Agrobank aims to mitigate reliance on manpower and weather-dependent agricultural practices .”
– Tengku Ahmad
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In 2024 , Agrobank aims to focus on two primary areas : business and developmental activities .
Specifically , Agrobank plans to enhance support in key agrofood sectors outlined in the NAP 2.0 , including livestock ( poultry ),
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fishery ( aquaculture ), crops ( paddy and rice , fruits and vegetables ), and dairy .
“ This entails more financing support for increased production to meet local demand , adoption and conversion to sustainable practices and modern machinery and equipment as well as exploring potential agriculture produce for export ,” he explained .
Furthermore , Agrobank has collaborated with KPKM , the Ministry of Finance ( MoF ), and BNM to introduce Malaysia ’ s inaugural crop takaful programme for paddy farmers , offering comprehensive and affordable takaful coverage .
Additionally , in 2024 , Agrobank plans to launch alternative investment solutions to attract private sector investments into agriculture .
“ These structured investment opportunities aim to promote sustainability , including financing for circular economy initiatives ( waste-to-wealth ), climate-supportive ventures , and sustainability-linked programmes .
“ Moreover , Agrobank will expand its delivery of programmes focusing on social upliftment and financial literacy education to targeted population segments .” - @ AGROBiz
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