KUALA LUMPUR: Agrobank has signed a memorandum of understanding (MoU) with Borong (formerly Dropee), offering RM300 million in financing to micro, small, and medium enterprises (MSMEs) through the Digital Niaga Program.
Agrobank described this initiative as a strategic collaboration aimed at developing a digital ecosystem focused on agriculture and agribusiness.
By leveraging Borong's digital platform, Agrobank can tailor financing to meet the specific business development and expansion needs of MSMEs.
"The strategic partnership between Agrobank and Borong benefits underserved communities by providing more comprehensive access to financing and offering affordable financing options," it said.
Through this partnership, Agrobank and Borong are dedicated to fostering economic growth and generating opportunities for 15,000 MSMEs across Malaysia.
"By providing financial assistance and access to a wider market through Borong's platform, the collaboration will enable MSMEs to thrive and contribute to the country's overall development with the potential economic impact of RM8.6 billion within 3 years," it added.
Agrobank president and chief executive officer Datuk Tengku Ahmad Badli Shah Raja Hussin mentioned that in addition to offering financial assistance, the bank also provides entrepreneurship training for business owners.
"Access to this entrepreneurship training can help them strengthen their business strategies so that they can increase their competitiveness in an increasingly challenging market.
"Furthermore, innovative and resilient businesses will drive the country's economic development, especially in marketing high-quality local products through digital platforms, particularly for the agricultural sector," he said.
Borong managing director Aizat Rahim said the Digital Niaga program is a golden opportunity for SMEs to turn their businesses around.
"This program provides the platform for them to find the right digital tools and easy access to financial resources.
"The aim is to boost revenue and growth for millions of Malaysia's SMEs by connecting them to the right solutions and partners," he added.