BUDGET 2026: AGROBANK COMMENDS GOVERNMENT’S COMMITMENT TO STRENGTHEN AGRICULTURE SECTOR, FOOD SECURITY

KUALA LUMPUR, Oct 11 (Bernama) -- 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.

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.

“The significant investment in agriculture and food security under Budget 2026 represents meaningful recognition of this vital sector,” he said in a statement.

Tengku Ahmad Badli Shah said Budget 2026 has allocated RM1.1 billion for Agrobank to support agropreneurs in expanding their operations, while advancing automation and mechanisation.

“This substantial funding will not only empower industry players but also boost productivity and ensure the agricultural sector as a pillar of national food security,” he said.

Tengku Ahmad Badli Shah also highlighted the Agropreneur NextGen Programme under the Ministry of Agriculture and Food Security (KPKM), which provides start-up and project expansion grants totalling RM20 million for agricultural projects.

“We strongly support the government's proposed 100 per cent income tax exemption on statutory income for companies launching new food production ventures, valid for 10 years,” he said.

Additionally, he said existing companies pursuing expansion projects will receive a 100 per cent income tax exemption on statutory income for five years. 

To promote automation and enhance crop yields, he said the government plans to extend agricultural automation tax incentives covering plantation, livestock, apiculture, aquaculture and deep-sea fisheries to include selected livestock farming operations using closed housing systems.

Tengku Ahmad Badli Shah said as a development financial institution, Agrobank remains committed to partnering with the government to advance this critical sector.

“Our mission extends beyond providing financing. We are dedicated to supporting livelihoods and building sustainable futures. Budget 2026 represents more than figures, it embodies hope and opportunity for the farming communities in the agro-food sector,” he said.

-- BERNAMA