KUALA LUMPUR, 2 April 2025 – Agrobank, Malaysia’s leading development financial institution for the agrofood sector, has reached a historic milestone, disbursing a record RM10.44 billion in financing in 2024. This achievement represents a 25.46% increase year-on-year compared to the RM8.32 billion recorded in 2023, underscoring the bank’s pivotal role in enhancing national food security and empowering rural and agribusiness communities.
The record figure, announced during Agrobank’s 2024 Financial Review, reflects the bank’s successful strategy to expand outreach, introduce inclusive financing schemes, and modernize support for the agrofood value chain across Malaysia.
Financing the Nation’s Food Security Agenda
Agrobank’s core mission has always been aligned with the national development agenda, particularly in boosting self-sufficiency in food production and promoting economic empowerment in rural Malaysia.
In 2024, the bank intensified financing in strategic sub-sectors such as:
- Agrotechnology and smart farming
- Halal food production
- Sustainable fisheries and aquaculture
- Agro-based small and medium enterprises (SMEs)
- Youth agripreneurship and digital agriculture platforms
According to Agrobank, more than 70% of the total disbursement went directly to micro and small agribusinesses, aligning with the government’s goal to strengthen grassroots economic resilience while enhancing agricultural productivity.
“We are proud to be the backbone of Malaysia’s food economy. This record disbursement reflects not just financial strength, but our ongoing commitment to build an inclusive and future-ready agro-sector,” said President and CEO Tengku Ahmad Badli Shah Raja Hussin.
Strategic Transformation and Policy Alignment
The bank’s performance in 2024 is credited to its five-year transformation roadmap, launched in 2022, which aims to reposition Agrobank as a digitally enabled, customer-centric institution.
Under this roadmap, the bank introduced several policy-aligned initiatives:
- i-Agro digital onboarding for farmers and cooperatives,
- AgroBina financing for agricultural infrastructure and logistics,
- Dana Usahawan Tani Madani – a RM200 million fund supporting B40 and youth agripreneurs,
- Partnerships with federal agencies like FAMA, MARDI, and LPP to ensure holistic support systems for clients.
Agrobank also deepened its focus on Shariah-compliant financing products, ensuring financial inclusivity for Malaysia’s rural Muslim communities.
“As we support national objectives like the National Agrofood Policy (NAP 2.0) and Madani Economy, our role has evolved from lender to ecosystem builder,” Tengku Ahmad added.
Performance Highlights and Reach
As of end-2024, Agrobank reported:
- Over 500,000 active customers
- 90% outreach in rural and semi-urban areas
- RM25 billion in total assets
- RM11 billion in financing portfolio in the agro-sector
The bank expanded its footprint by launching new branches in underserved regions of Sabah, Sarawak, Kelantan, and Perlis, while enhancing mobile banking access and agent banking networks under AgroAgent.
Empowering Women and Youth in Agriculture
A notable highlight in 2024 was the bank’s commitment to gender and youth inclusion. Through initiatives like Agro Nita and AgroYouth Biz Challenge, Agrobank facilitated over RM250 million in financing for women-led agribusinesses and youth-led food tech start-ups.
The bank’s inclusive approach aligns with the government’s broader emphasis on creating a multigenerational agro workforce, reversing urban migration trends and reviving interest in agriculture as a viable career path.
“Young people are the future of farming. We must give them the tools, capital, and platforms to innovate in agriculture,” said Tengku Ahmad.
Sustainable and Climate-Resilient Agriculture
Amid growing climate threats and environmental concerns, Agrobank has also intensified support for sustainable farming practices. In 2024, RM1.2 billion in financing was directed towards:
- Organic and pesticide-free farming,
- Water-efficient irrigation systems,
- Low-emission livestock and feed solutions.
The bank plans to launch Malaysia’s first Green Agro Financing Index by 2026 to benchmark climate-smart lending performance.
Looking Ahead to 2025
Building on its strong momentum, Agrobank has set an ambitious target to cross RM12 billion in financing disbursement for 2025, driven by new product offerings, deeper digitalization, and stronger integration with the country’s agro-industry ecosystem.
As Malaysia’s only full-fledged development financial institution dedicated to agrofood, Agrobank is expected to play an even more strategic role in supporting the country’s ambition to become ASEAN’s food production hub.
Conclusion
Agrobank’s record disbursement of RM10.44 billion in 2024 is not just a financial feat—it is a testament to the bank’s central role in Malaysia’s rural development, food resilience, and inclusive economic growth.
With its eyes firmly set on innovation, sustainability, and social impact, Agrobank continues to evolve as a key enabler in Malaysia’s transition toward a modern, high-income, and food-secure nation.
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