KUALA LUMPUR (March 26): State-owned Agrobank, or Bank Pertanian Malaysia Bhd, announced on Wednesday its target for net financing growth of between RM1.5 billion and RM1.6 billion in 2025. This growth will be driven by increased support for agricultural sectors, in line with the National Agrofood Policy.

The bank disbursed a record RM10.44 billion worth of loans, up RM1.2 billion or 25.46% year-on-year (y-o-y), surpassing 2023’s growth of 15.97%. This growth was largely attributed to strong performances in the SME, microfinance and Ar-Rahnu segments.

Agrobank president and chief executive officer Datuk Tengku Ahmad Badli Shah Raja Hussin said the development financial institution remains committed to strengthening the country’s food production capacity while modernising the agricultural sector.

"Our business extends beyond traditional banking. We are committed to financial intervention in high-risk agricultural sectors where commercial banks may hesitate to lend," said Tengku Ahmad Badli Shah at a press conference following the announcement of Agrobank’s 2024 financial performance.

The bank achieved a total income of RM1.26 billion in 2024, up 9.32% y-o-y – the highest in the last three years. This was driven by steady growth in financing and ancillary income from investments (up by 22.8%), recovery efforts (up by 9.67%) and fee-based income (up by 9.95%).

For 2025, the bank will allocate RM200 million to support agricultural modernisation and increase financing for several segments, including ruminant farming, poultry and aquaculture.

"Based on our discussions with the Ministry of Agriculture and Food Security, we are working towards shifting reliance from sea-based fisheries to aquaculture. Currently, the ratio stands at 60:40 in favour of capture fisheries, but by 2030, the goal is to reverse this to 40:60," Tengku Ahmad Badli Shah added.

The bank also aims to expand financing in the SME and microfinance segments. The bank exceeded its 2024 SME financing target of RM420 million by disbursing RM590 million and has now set a higher target of RM600 million for 2025. Meanwhile, microfinancing allocations will increase to RM220 million from RM185 million in 2024.

The bank categorises SME financing as loans of up to RM5 million, following government SME definitions, while corporate financing starts at RM30 million.