Agrobank Assists Rice Farmers in Raising Funds: 50% Financing Profit Rate Discount

(Kuala Lumpur, 10th) Agrobank Malaysia has agreed to give rice farmers a 50% discount on financing profit rates to help them raise funds for the next rice planting season.

Minister of Agriculture and Food Security, Datuk Seri Mohamad Sabu, pointed out that the government has always paid attention to the funding challenges faced by rice farmers in maintaining national food production.
"I am pleased to announce that Agrobank has provided rice farmers with a working capital loan package and has agreed to grant a 50% discount on the profit rate for this loan."

He said the government continuously strives to promote food supply efforts, including the production of vegetables, fish, meat, and other foods to ensure stable supply. We will work hard to assist them in overcoming the current difficult period to safeguard the stability of national food supply capacity.

He made this statement on Saturday at the Aman Central mall while officiating the launch of the Northern Malaysia Road to MAHA 2026 Agricultural, Horticultural, and Agro-Tourism Exhibition.

He revealed that MAHA 2026 will be held at the MAEPS Exhibition Centre in Serdang, Selangor from August 28 to September 6 this year, and will also take into account the impact of current global crises and adopt cost-saving measures.

He said that last year's MAHA attracted more than 5 million visitors. He hopes to maintain a similar crowd this year, and during MAHA this year, it is expected that approximately RM 8 billion in the signing of memoranda of understanding and trade volume will be reached, creating about RM 58 million in sales.

On the other hand, Agrobank's President and Group CEO, Tengku Ahmad Badli, stated that after providing the 50% discount, the previous maximum financing rate of 4% will be reduced to 2% depending on the loan package.

He said that the maximum loan amount provided can reach up to RM 50,000, but most rice farmers usually only apply for about RM 7,000 to 10,000, which is used for planting on 3 hectares of rice fields.

"To prevent rice farmers from facing funding shortages at the start of planting, they can apply for loans from Agrobank according to their eligibility and repay after the harvest season ends."