NAFAS RECORDS HIGHEST PROFITS FOR TWO CONSECUTIVE YEARS

KUALA LUMPUR, Feb 11 (Bernama) -- The National Farmers’ Organisation (NAFAS) set a record by posting its highest profits for two consecutive years, RM227 million in 2024 and RM201 million in 2025, after heavy losses in the previous two years.

In a statement today, NAFAS called the achievement a major turning point since its 1972 founding and said it reflects the success of recovery and restructuring efforts since 2023.

It said the recovery was driven by reinforcing core revenue streams, rehabilitating loss-making units, and tightening internal controls.

It added that NAFAS secured RM2.46 billion in agricultural input contracts for 2025 to 2028, contributing nearly RM1 billion to group revenue through open tenders at the ministry, government agency and open market levels.

“Bold steps have also been taken to recover over RM500 million in outstanding payments, significantly reducing the group’s receivables,” read the statement.

For the record, NAFAS posted losses of RM421 million in 2022 and RM236 million in 2023.

As part of its reforms, the organisation closed subsidiaries with nearly RM200 million in cumulative losses, saving around RM5 million annually and refocusing resources on competitive agri-input, agronomy, and agri-tech units.

The statement added that with stronger finances, NAFAS is now well positioned to distribute dividends to State Farmers’ Organisations and ensure fertiliser reaches nearly 200,000 farmers more efficiently, in line with its annual production capacity of 360,000 metric tonnes.

To strengthen governance and business direction, NAFAS launched the 2026-2030 Reform Plan (NAFAS 2.0), themed Transformation, Empowerment, and Competitiveness, aiming to enhance integrity and sustainability for its over 600,000 farmer members.

The plan focuses on five strategic pillars: Governance and Leadership, Legal and Compliance, Procurement Management, Business Model and Financial Sustainability, and Communication and Public Trust.

The document was handed to Agriculture and Food Security Minister Datuk Seri Mohamad Sabu at a recent event, marking NAFAS’s ongoing restructuring and alignment with national agri-food policy.

At the event, NAFAS Advisory Council chairman Tan Sri Zainal Rahim Seman, alongside Farmers’ Organisation Board director-general Amir Mat Amin and NAFAS general manager Muhammad Faris Arriffin, outlined progress on reforms, including improvements in financial management, procurement, and corporate governance.

-- BERNAMA