The Facility is to increase food production for Malaysia and for export purposes. Following the Budget 2022 announcement, for agrofood production, the allocation of the Agrofood Facility has been increased by RM500 million, resulting in a total allocation RM2 billion.
|Purpose of financing|| ∙Capital expenditures|
∙Development of agrofood projects
Eligible agrofood activities are viable projects involving
primary agrofood production (upstream), agrofood processing/ manufacturing, or other agrofood downstream activities. Half of the total production is sold in the domestic market, supportive of domestic primary agrofood production.
(Not for refinancing of existing financing facilities)
|Eligibility criteria||Malaysian SMEs* that fulfil the following criteria:|
∙Registered with the Companies Commission of Malaysia (SSM), or authorities/district offices in Sabah and Sarawak, statutory bodies for professional service providers.
∙Shareholding by Public Listed Companies and Government LinkedCompanies (if any) in the SMEs shall not exceed 20%.
∙Malaysians residing in Malaysia hold a minimum of 51%shareholding in the business.
|Maximum Financing Amount||RM5 million|
|Financing Rate||Up to 3.75% p.a. (inclusive of any guarantee fee)|
|Maximum Tenure||Up to 8 years|
|Participating Financial Institutions (PFIs)|| ∙Commercial banks|
∙Development financial institutions regulated by BNM
|Application procedure||Submit application directly to PFIs and approval will be subjected to the credit assessment of the PFIs.|
Read more details here.