KUALA LUMPUR: Shariah-compliant Peer-to-Peer (P2P) financing platform, microLEAP announced a collaboration with Bank Pembangunan Malaysia Berhad (BPMB) to provide RM10 million in Shariah-compliant microfinancing for Malaysia's agriculture community under Digital Agtech programme by Malaysia Digital Economy Corporation (MDEC).
"We are proud that established entities such as BPMB and MDEC have chosen microLEAP to work with on this project," said microLEAP's founder and CEO, Tunku Danny Nasaifuddin Mudzaffar.
To stay relevant, it is extremely important for the farming industry to adopt future-forward solutions, which is the main objective of the microfinancing project -- to accelerate the use of smart farming systems to allow farmers to accelerate the adoption of technology known as 'smart fertigation system' in their farming operations.
"This collaboration marks another significant milestone for microLEAP. Working together with financial institutions and government agencies to provide much needed support to local agri-tech players is the way forward to ensure Malaysia continues its high-potential digitalisation path," stated Tunku Danny.
The collaboration was struck at MDEC's AI and Data Week (AIDW) 2021 event, where a virtual MoU was signed between BPMB and MDEC.
BPMB's president and group chief executive officer, Arshad Ismail said, upon realising the opportunity to contribute further to the nation's agri-tech scene, microLEAP was identified as the ideal medium given the P2P financing platform's vast know-how on microfinancing for a smooth end-to-end experience.
"As one of Malaysia's oldest development financial institutions, we are committed to facilitating greater automation and digitisation across all sectors and businesses in the country. Therefore, we are happy to have formed this strategic collaboration with microLEAP through MDEC's Agtech programme. The collaboration will feature funding support from
BPMB to drive digitisation initiatives in the country and will be deployed through a peer-to-peer financing platform operated by microLEAP.
"Leveraging on our collective strengths and expertise, I am confident that we will be able to accelerate the growth of Malaysia's digital economy," said Arshad.
In a statement released by microLeap, the platform shared data on the fertigation technology that will help farmers to optimise the use of fertilisers and improve their crops' yield by 22 per cent, which also to improve farmers' income by 33 per cent.
The financing project will benefit the Kuala Langat Area Farmers Organisation (Pertubuhan Peladang Kawasan Kuala Langat) first with more farming organisations to follow in the near future.
As Malaysia looks to be the regional hub for the digital economy, the financing project will help the farming community thrive with technology solutions, which could be applied to other industries severely affected by the pandemic too.
"AgTech is a vital pillar within the digital economy not just in strengthening Malaysia's food security via increased productivity and efficiency, but also to spark and nurture a new generation of innovation-fuelled farmers.
"The collaboration between BMPB and microLEAP is a significant step forward in driving the growth of MDEC's eLadang AgTech programme towards the vision of a progressive, inclusive and sustainable Keluarga Malaysia," said MDEC's CEO, Mahadhir Aziz.