Agrobank, agency offer financing to pepper smallholders

KUCHING: Agrobank has inked a strategic deal with the Malaysian Pepper Board (MPB) to provide special financing to more than 300,000 registered pepper smallholders in the country, says chairman Tan Sri Mohamad Zabidi Zainal.

As a bank given the mandate to provide financing solutions to the agriculture sector, Agrobank is confident the collaboration with MPB will directly benefit the smallholders financially.

“As we are aware, pepper is one of the major exports of the country. In order to increase output, exports, national revenue and income for smallholders, we have come up with this joint collaboration.

“Agrobank and MPB will assume our respective roles. MPB will look into increasing the number of smallholders and smallholdings while Agrobank will provide financing either to the smallholder or cooperative that would be established under the Malaysia Pepper Board,” he said after the signing ceremony in conjunction with the “Financial Carnival” organised by Bank Negara Malaysia (BNM), here, yesterday.

Present were Deputy Plantation and Commodities Minister Datuk Datu Nasrun Datu Mansur and BNM assistant governor Abu Hassan Alshari Yahaya.

Datu Nasrun said the strategic alliance was necessary as pepper exports had been encouraging over the years.

“As a bank entrusted to help the ‘unserved’ and ‘underserve’, Agrobank viewed the mandate very seriously. The ministry is grateful that such an arrangement could be arranged to improve the quality and output of pepper produced in the country,” he added.

Meanwhile Agrobank Acting president and chief executive officer Masaat Awadz said the new financing facility would be made available from January next year.

The MPB would carry out the initial screening of applications before submitting them to Agrobank.