• Primary Agriculture Sector

The Fund aims to improve access to financing for SMEs in the Primary Agriculture Sector by complementing sources of financing from financial institutions

Financing under Primary Agriculture Sector is available for:

·        Capital expenditure (e.g. purchase of machinery and equipment or renovation cost for owner-occupied business premises); and/or

·        Working capital; and

·        Development of agricultural projects. The land cost may be included in the computation of the total project cost provided that:

a)        The amount does not exceed 30% of the total project cost; and

b)        The land will only be used for primary food production activities


Agricultural projects financed by the Fund shall be:

·        Viable projects involving primary food production, integrated agriculture and processing/distribution of food (end-to-end); and

·        Domestic oriented, where at least half of the total production is sold in the domestic market


The financing shall not be used for the following activities:

·        Purchase of shares;

·        Refinancing of existing credit / financing facilities;

·        Purchase of land / real estate investment;

·        Property development;

·        Investment by investment holding companies

·        Activities where stock in trade is money (including credit, leasing, factoring and insurance businesses)

·        Gambling , alcohol, tobacco or other similar type of activities and products;

·       Non-Shariah-compliant business activities (applicable for Islamic financing); and

·       Ancillary labour cost (i.e. other than wages)


Term loan

Documentary credit

Trust receipt


SMEs in the primary agriculture sector  that fulfill the following criteria shall be eligible for financing from the Fund:

(i)      Registered with the Companies Commission of Malaysia (SSM), authorities/district offices in Sabah and Sarawak;

(ii)    Maximum shareholders’ funds not exceeding RM5 million;

(iii)   Malaysian residing in Malaysia hold a minimum of 51% shareholding in the SMEs; and

(iv)   Business activities must be within Malaysia

Maximum Tenure:

The financing tenure shall not exceed 8 years from the date of the first drawdown

Loan Amount:

The maximum aggregate amount of financing under the Fund shall be limited to RM5 million per SME. This would include financing:

  • approved under any of BNM’s Fund (exclusive of the Special Relief Facility 2015 and any special assistance established by BNM to assist SME that are affected by disaster) and
  • to any related companies of the SMEs with common shareholder(s)

Maximum financing rate shall be 3.75% per annum

  • Processing fee is waived.

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1300 888 828

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