November 7, 2023

Malaysian bank to provide funds to poultry breeders as country brings end to subsidies

Malaysia's Agrobank expressed commitment to ensuring that the country's supply of poultry from farms is stable and not burdensome to residents, and that there is no profiteering activity along the supply chain.

This assurance was made in the view of the government's subsidy realignment exercise which will be conducted in phases for subsidy abolishment and poultry price controls.

The Malaysia government-owned bank said it is being proactive by providing micro and community breeders with financing funds of up to RM350,000 (US$75,342), as well as up to RM5 million (US$1.1 million) for small and medium-scale breeders.

"Agrobank is always committed to working with KPKM (Agriculture and Food Security Ministry) to achieve the government's agenda through the financing of working capital and fixed capital for small and medium-scale breeders, while the Micro Credit Scheme applies to community breeders in the form of working capital financing," said Agrobank president and chief executive officer Datuk Tengku Ahmad Badli Shah Raja Hussin. "The funding includes the transformation from an opened chicken hutch concept towards a closed one.

"With a margin of up to 90% for the financing period of up to nine years, community and microbreeders, together with small and medium-scale breeders could earn profit rates of up to 3% a year on a monthly balance.

"Another objective of the programme is to increase direct access to poultry supply from breeders to market wholesalers and retailers.

"This programme also enables entrepreneurs to shift to a more effective breeding process, which indirectly increases farm output, reduces production costs and in the end, leads to more affordable poultry prices to the market."

Hussin also assured that Agrobank will continue to provide support to ensure the country's food safety and security.

- The Star