Kuala lumpur: Agrobank has commended the government's continued commitment to strengthening Malaysia's agriculture and food security agenda, as announced by Prime Minister Datuk Seri Anwar Ibrahim during the presentation of Budget 2026 yesterday.
According to BERNAMA News Agency, Agrobank group president and chief executive officer Datuk Tengku Ahmad Badli Shah Raja Hussin expressed appreciation for the government's focus on agro entrepreneurship with substantial allocations, aligning with the bank's shared vision to enhance agricultural activities and fortify the nation's food value chain.
Tengku Ahmad Badli Shah stated that the significant investment in agriculture and food security under Budget 2026 represents meaningful recognition of this vital sector. He highlighted that RM1.1 billion has been allocated for Agrobank to support agropreneurs in expanding their operations, while advancing automation and mechanisation.
The funding aims to empower industry players, boost productivity, and establish the agricultural sector as a pillar of national food security. Additionally, the Agropreneur NextGen Programme under the Ministry of Agriculture and Food Security (KPKM) will provide start-up and project expansion grants amounting to RM20 million for agricultural projects.
The government's proposal for a 100 per cent income tax exemption on statutory income for companies launching new food production ventures, valid for 10 years, received strong support from Tengku Ahmad Badli Shah. Existing companies pursuing expansion projects will benefit from a 100 per cent income tax exemption on statutory income for five years.
To promote automation and enhance crop yields, agricultural automation tax incentives will be extended to cover plantation, livestock, apiculture, aquaculture, and deep-sea fisheries, including selected livestock farming operations using closed housing systems.
As a development financial institution, Agrobank remains committed to partnering with the government to advance this critical sector. Tengku Ahmad Badli Shah emphasized that their mission extends beyond providing financing, focusing on supporting livelihoods and building sustainable futures. Budget 2026 embodies hope and opportunity for the farming communities in the agro-food sector.