Agrobank Remains Optimistic About Agri-food Sector's Resilience Amid Global Challenges
By Norhayati Mohd Akhir
PUTRAJAYA, July 5 (Bernama) -- Agrobank remains optimistic about the resilience of the country's agri-food sector despite economic uncertainty and global supply chain disruptions.
Demand for financing is expected to remain strong, particularly among micro, small and medium enterprises (MSMEs) and agri-food industry players.
Its president and chief executive officer, Datuk Tengku Ahmad Badli Shah Raja Hussin, said growth opportunities are also seen in strategic subsectors such as poultry and egg production, food crops, aquaculture, dairy, and food processing that support the national food security agenda.
He said Agrobank will continue this year to focus on financing high-impact subsectors, including value-added activities, the use of smart technology, sustainable agricultural practices, and the development of young entrepreneurs and new agropreneurs.
"In a challenging economic environment, Agrobank will continue to play its role as a development financial institution by providing financing that supports sustainable growth in the agri-food sector," he told Bernama recently.
Tengku Ahmad Badli Shah said one of the bank’s main risks was its portfolio’s exposure to the fisheries sector, which is vulnerable to weather changes, rising operational costs, fluctuations in raw material prices, supply chain disruptions, disease outbreaks and changes in water quality.
As such, he said, the bank, which focuses on developing the agricultural sector, will continue to balance prudent risk management with its development mandate through rigorous credit assessment, continuous monitoring, customer guidance and the promotion of technology and digitalisation to ensure inclusive and sustainable growth of the agro-industry.
Tengku Ahmad Badli Shah also said that Agrobank is committed to ensuring the implementation of additional financial assistance initiatives through the SME Stability Assistance Facility is fully utilised by MSMEs.
The RM5 billion special facility, introduced by the government through Bank Negara Malaysia, aims to assist SMEs facing global economic challenges and strengthen the country's economic resilience.
Commenting on the bank's financing performance, Tengku Ahmad Badli Shah said Agrobank's financing portfolio increased to RM18.59 billion as of May 20, recording a year-on-year (y-o-y) growth of RM733.96 million compared with RM17.86 billion at the end of May 2025, driven primarily by the strong performance of the retail and SME financing segments.
He noted that as of the first quarter of 2026, Agrobank's financing portfolio grew to RM18.29 billion, up by RM432.38 million y-o-y.
"The growth was mainly driven by retail financing amounting to RM450.96 million, followed by SME financing of RM41.61 million, micro financing (RM19 million), and contract financing (RM3.07 million).
"The performance of Agrobank's financing remains positive, particularly in the retail and SME segments, but efforts need to be intensified to close the gap against the annual targets," he said.
In terms of product performance, he said Ar-Rahnu financing recorded growth in assets of RM330 million, equivalent to 60 per cent of the annual target, while the Hartani product grew by RM32.9 million, or 65.8 per cent of the target.
"The AgroCash product recorded growth of RM87.38 million, surpassing the annual target by achieving 116.51 per cent," he added.
-- BERNAMA