IN light of the economic challenges post-Covid-19, the government has introduced the National Economic Recovery Plan (PENJANA) to empower the people and stimulate the economy.
Themed ‘Building the economy together’, the government has identified three key areas – empowering the people, boosting business, and stimulating the economy under PENJANA.
In total, the government has outlined 40 initiatives with an allocation of RM35 billion to achieve those goals – RM10 billion of which involves direct fiscal injection from the government.
Datuk Seri Ronald Kiandee
Minister of Agriculture and Food Industry Datuk Seri Ronald Kiandee said PENJANA is a comprehensive and timely plan to revitalise the country’s economic sector.
In the agriculture and food industry sector, the RM350 million Agrofood Fund has been set up to ensure the viability of agriculture and commodities entrepreneurs through PENJANA.
“The fund will be channelled to all eligible agriculture and food sector entrepreneurs, including in Sabah and Sarawak, through the Agrobank Financing Micro-Credit Scheme. The financing facility is up to RM50,000 per entrepreneur for up to five years at a rate of 3.5 per cent and no collateral is required,” he said during a special interview at his office in Putrajaya.
“The scheme is expected to benefit small and medium-sized enterprises (SMEs), and those in the low-income category (B40) to help recover business cash flow and rebuild projects or businesses impacted by the Covid-19 pandemic,” he said.
“The fund also gives entrepreneurs an opportunity to raise capital for their businesses. It is also to encourage the people to venture into agrofood to obtain start-up capital, and also for existing entrepreneurs at farmers’ markets, fishermen’s markets, and morning markets,” he said.
He explained that the ministry is targeting five groups of micro-entrepreneurs from the agrofood sector, entrepreneurs under Area Farmers’ Organisations, fishermen under the Fisheries Development Authority of Malaysia (LKIM), and the National Fishermen’s Association (NEKMAT), rice farmers, new businesses based on agriculture, downstream and food, as well as existing production-based enterprises including micro entrepreneurs.
“Through this fund, the agricultural community will be provided with non-collateral financing facilities like financing limit of minimum RM1,000 and (maximum) RM50,000, and a maximum financing period of up to five years. I hope this scheme will encourage more from the younger generation to venture into the agrofood field, especially those who lost their jobs, who are interested in the field of agriculture,” he said.
Urban Farming Project
“For example, at the Seri Perlis 2 public housing community, most of those involved in this project are working on small-scale vegetable planting for their own consumption and supplementing their income by selling the surplus produce. Through PENJANA, the government has set aside RM10 million for the Urban Farming Project. The allocation will benefit 800 communities and 12,000 individuals, who are newcomers to urban farming.
“Among the assistance provided are one-off incentives in the form of seeds, fertiliser, infrastructure, equipment, expert advice, and training, worth up to RM500 per individual and RM50,000 per community.
“At the same time, the implementation of the Urban Farming Project under PENJANA is aimed at reducing the cost of living of the people, especially those in the urban and suburban population affected by Covid-19,” he said.
In addition, he said the programme also helps to create social interaction and promotes communication among the urban community, and ensures that food is safe, contributes to environmental sustainability, and promotes agriculture within the community.
The Urban Farming Project is open to all Malaysian citizens aged 18 and above, and limited to one application only.
For the community category, the project should be carried out around the residential area with a minimum of 10 participants, while for the individual category, projects are carried out individually in their respective homes.
The main goal of the project is to encourage the people to plant their own food to meet their daily needs and to reduce their cost of living.
The ministry hopes this project will also help participants generate additional income through the sale of surplus produce, as well as support the government’s efforts in ensuring the country’s food quality and supply security.
The project is also expected to foster awareness of and interest in the importance of agriculture as a direct contributor to the well-being of the people and beautifying urban communities.
Agrofood Workforce Mobility
In addition to the Urban Farming Project and Microcredit Financing Scheme under Agrobank, another initiative under PENJANA for the agriculture and food sector is the Agrofood Workforce Mobility, an incentive scheme worth RM40 million for pioneer companies to train and educate the workforce to go into the agriculture and plantation sector.
“Agrofood Workforce Mobility is a two-pronged strategy for developing the human capital of the affected agrofood sectors during the implementation of the Movement Control Order, Conditional Movement Control Order, Recovery Movement Control Order, and at the same time assist other sectors related to the agrofood sector,” said Kiandee.
“One of the programmes to be implemented under Agrofood Workforce Mobility is MyFutureAgro, where the government will appoint leading companies to provide on-the-job training for between one and six months for participants interested in the agriculture and plantation sector.
During this period, the appointed company will receive a salary allowance and programme participants will receive a one-off mobility allowance to cover the costs of moving to join companies located far from where they live.”
Selected participants will receive basic technical training for up to one month before being assigned to high-tech companies, he said.
Additionally, participants who successfully complete the agricultural training and reskilling, who also have a project development plan in the agrofood industry, will be given a start-up grant under the Young Agropreneur Grant and the Agrobank Micro Financing Scheme.
PENJANA’s RM360 million Agrofood Fund gives agro-entrepreneurs the opportunity to raise capital, including those at farmers’ markets, fishermen’s markets and morning markets.
PENJANA to ensure nation’s food security
The various schemes, programmes, and incentives under PENJANA will not only rejuvenate the country’s economy but also secure the country’s food security.
“Generally, the nation’s food supply is at a sufficient and accessible level, but there is still a need to re-examine the country’s food security position to ensure the stability of its food security level, and regulating it in terms of availability, accessibility, safety, and affordability for the people at all times, even during difficult times or uncertainties in the future,” said Kiandee.
He added the special initiative under PENJANA can help SMEs to continue their agricultural and food production activities while the Agro-based Micro Financing Scheme will ease the burden of entrepreneurs and help cash flow for their business operations. The Urban Farming Programme will encourage cultivation activities among urban and suburban communities for self-sufficiency as well as generate an income for individuals and communities in the long run. It could also develop human capital for agriculture and at the same time mobilise supply from other affected sectors to the food sector, he said.
“This initiative will contribute to the sustainability of agricultural activities and food production towards national food security,” said Kiandee.
PENJANA will not only rejuvenate the country’s economy but also secure the country’s food security.
Promoting PENJANA at all levels
As the ministry plays a leading role in the nation’s agriculture, Kiandee said it is aware of limited internet access issues in Sabah and Sarawak.
He said communities or individuals in Sabah and Sarawak who are interested in participating in the project can visit or contact the nearest district Agriculture Office for further information.
“All agencies under my ministry will actively promote PENJANA at all levels to get out more information on this initiative. Thus, I have gone to the ground to meet with industry players and grassroots stakeholders to hear their opinions and at the same time share the initiatives and assistance provided through my ministry,” he said.
He added all schemes, programmes, and incentives under PENJANA should be implemented quickly, accurately, and efficiently for the benefit of the people.