SERDANG: Agrobank has signed a memorandum of understanding (MoU) with Borong (formerly known as Dropee) for RM300 million financing to be offered to micro, small and medium enterprises (MSMEs) through the Digital Niaga Programme (DNP).
Agrobank president/CEO Datuk Tengku Ahmad Badli Shah Raja Hussin said that Agrobank will offer financing up to RM50,000 initially, with the
potential to increase based on business performance.
“The financing criteria for this payment scheme is a minimum of six months of operation for businesses that have been trading and registered for at least six months. Additionally, they must be registered under the Borong platform,” he told reporters after the MoU signing at Malaysia Agriculture, Horticulture & Agrotourism Exhibition 2024 last week.
Ahmad Badli said Agrobank and Borong aim to drive economic growth and create opportunities for 15,000 MSMEs in Malaysia particularly in agriculture and agrofood related products that are listed on Borong.
“On the Borong platform, there are around 165,000 producers and suppliers using this marketplace. The total transaction value on the platform has reached RM17 billion. Hopefully,by using Agrobank financing, we can help even more sellers, especially in the agro-industry,” he said.
This initiative is a collaboration to develop a digital agriculture and agribusiness-based ecosystem.
Through Borong’s network, Agrobank can provide financing to MSMEs according to their individual needs for business development and expansion.
Ahmad Badli said besides offering financing assistance, Agrobank also provides entrepreneurship training to entrepreneurs.
“Access to this entrepreneurship training can help them strengthen their business strategies so that they can increase their competitiveness in an
increasingly challenging market.
“Furthermore, innovative and resilient businesses will drive the country’s economic development, especially in marketing high-quality
local products through digital platforms, particularly for the agricultural sector.”
According to Borong managing director Aizat Rahim, DNP is a golden opportunity for SMEs to turn their businesses around.
“This programme provides the platform for them to find the right digital tools and easy access to financial
resources.
“The aim is to boost revenue and growth for millions of Malaysia’s SMEs by connecting them to the right solutions and partners,” he said.
