This article first appeared in The Edge Malaysia Weekly on December 15, 2025 - December 21, 2025

THE recent system problem at Bank Pertanian Malaysia Bhd (Agrobank), reported to involve losses of up to RM165.75 million, appears to be linked to a coordinated attempt to siphon off funds from the bank using hundreds of accounts.

Sources privy to investigation documents say 718 accounts across 19 financial institutions, including commercial, Islamic and digital banks, as well as e-wallet platforms, were allegedly used in the scheme.

In an email response to The Edge on the veracity of the numbers — namely the 718 affected accounts and RM165.75 million in losses — Bank Negara Malaysia says: “The affected institution has been working closely with BNM, law enforcement agencies and experts to investigate the matter, establish the root causes and recover lost funds.

“Investigations so far reveal that no customer funds have been impacted, no customer data has been compromised, [and] all financial services, including mobile and internet banking, continue to operate normally.”

Sources familiar with the matter, however, say Agrobank is understood to operate its own in-house payment system that serves as a connector to the real-time retail payments platform (RRP), an e-payment infrastructure managed by Payments Network Malaysia Sdn Bhd (PayNet).

“This system sends payment instructions, such as credit or debit [request], to PayNet to be channelled into other banks. Each message includes the sender’s account information, recipient’s account, the transaction amount and verification code,” a source explains.

Bank Negara owns a 35.5% stake in PayNet. Apart from the central bank, PayNet is also jointly owned by a consortium of 11 Malaysian financial institutions. 

“The incident remains isolated with no imminent threat to the financial system. The banking system and payments infrastructure have been operating normally since the incident was first reported,” Bank Negara says.

The central bank adds that it continues to monitor the institution’s response and corrective actions, ensuring that adequate safeguards are in place to protect the integrity of the broader financial system.

Speculation about the incident has intensified since The Edge first reported that Agrobank may have suffered a potential loss of RM165 million. While some sources attribute the issue to hacking, others suggest the bank fell victim to a scam or encountered a failure involving a third-party service provider.

As of now, the exact cause remains unclear.

In a reply to The Edge earlier this month, Agrobank said it was unable to provide any specific figure “while the ongoing internal assessment is still in progress”.

It explained that the matter is related to internal technical processes, and that the bank is currently reviewing it comprehensively as part of its standard governance procedures.

“In addition to the measures already communicated on Nov 13, we have begun strengthening our system monitoring capabilities, enhancing internal controls and engaging external system experts to conduct comprehensive audits.

“It would be premature to assign accountability before the internal review is completed. Any necessary action will be taken in accordance with our governance and regulatory requirements,” it added.

Earlier this month, about two weeks after the Nov 13 release, Sin Chew Daily ran a story claiming that a local bank had lost RM200 million in a hacking-related theft.

Citing sources, the report stated that the hackers had breached the bank’s security system and then used highly sophisticated money-laundering techniques to extract the large sum without detection.

Agrobank is fully owned by the Minister of Finance Inc, with the Federal Commissioner of Lands holding one share.

In its FY2023 annual report, Agrobank states that its funding comes primarily from two sources: commercial funds generated internally and concessionary funds obtained from entities such as Bank Negara, the Ministry of Finance and the Ministry of Agriculture and Food Security.

“Such concessionary funds are focused primarily on supporting the growth and development of the agriculture value chain,” it says.

For FY2023, Agrobank chalked up a profit before tax and zakat of RM215.25 million on the back of RM1.12 billion in revenue.

Since its formation in 1969, Agrobank has been tasked with providing financial and other products and services that enable the growth and development of Malaysia’s agricultural sector and rural communities. Apart from operating as a development financial institution (DFI), it offers retail banking solutions to strengthen its consumer products and services.

Agrobank has a nationwide presence of eight regional offices, comprising 208 networks, 143 physical branches, 29 kiosks and other facilities. 

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