Agrobank Inks MoU With MTDC In Efforts To Develop Malaysia’s Agriculture Industry

Malaysian Government-owned bank, Agrobank has inked a Memorandum of Understanding (MoU) with technology commercialisation player, Malaysian Technology Development Corporation (MTDC) under the provision of the Ministry of Agriculture and Food Industries (MAFI).

MTDC has been the key player in technology commercialisation in Malaysia and in promoting the adoption of technologies by local companies.

On the other hand, Agrobank is actively involved in charting the growth and development of Malaysia’s agriculture industry by offering Shariah compliant products and solutions across various customer segments including corporate, commercial, and micro financing customers.

The MoU was signed as a symbol of cooperation between the two agencies in in developing around 200 entrepreneurs under the entrepreneurship development programme, MTDC IR4.0. Agrobank will be financing the development programme with a total allocation of RM20 million.

“This partnership between Agrobank and MTDC is a perfect combination in realising the national vision of IR4.0,” MAFI Minister, Ronald Kiandee said.

On March 18, the minister launched the Agro-Youth Entrepreneurship Scheme (Agro-YES) specifically for Malaysian youth to move forward in agro-business.

MAFI, during the previously launched Agro-YES reaffirmed their commitment to revitalise and to rejuvenate the agriculture industry with new approaches with the youth on the front, applying modern technology [Internet of Things (IOT), and IR4.0], and strengthening research and development  in the agriculture sector.

The allocation of the MoU is provided by MAFI themselves as the RM20 million is just for the first phase and there will be more fundings in the later stages.

Additionally, the funds are also aimed at young entrepreneurs, the same with the previously launched Agro-YES scheme.

Speaking on the mass usage of drones and Artificial Intelligence (AI) in the agricultural sector, Kiandee has told that the fundings of the MoU is specifically made for that kind of technology.

Malaysia Digital Economy Cooperation (MDEC) DroneTech and Fourth Industrial Revolution (4IR) Ecosystem manager Wan Mohd Farhan Wan Mohd Fuad said the Covid-19 outbreak has boosted and accelerated the need for digitalisation and acceptance of drone technology in the sector.

“With the outbreak and Movement Control Order (MCO) since last year, technology like drone is seen as a more cost-effective and better option especially for conventional industries in Malaysia, for example, paddy farming and oil palm plantations,” he said during the 1st Virtual World Unmanned Aerial Vehicle (UAV) Summit on January 26.

“We have to admit that the younger generation is much more internet-savvy. So the usage of IR 4.0 is much suited with them and in this funding we can attract then to pursue the technology advancement in the agriculture sector,” he concludes.

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