Kuala Lumpur, 12 February 2025 – CGC Digital, Funding Societies | Modalku (Funding Societies), and FarmByte have signed a Memorandum of Understanding (MoU) to address the financing challenges faced by Micro, Small, and Medium Enterprises (MSMEs) in Malaysia’s agriculture sector. This collaboration aims to enhance access to funding, supporting agricultural business growth and contributing to Malaysia’s food security and economic resilience.
Tackling Malaysia’s Food Security Challenge
As Malaysia grapples with climate change, urbanization, and rising food imports, food security remains a significant concern. However, MSMEs in the agricultural sector face difficulties in securing financing due to a lack of collateral, limited financial literacy, and the sector’s perception as high-risk due to climate volatility and market fluctuations. These challenges have hindered the growth and productivity of many small-scale farmers.
Collaborative Impact on Local Farmers
This partnership is designed to have a direct, positive impact on local farmers by providing innovative financing options and improving financial literacy. The initiative will equip farmers with the capital and tools necessary for sustainable growth, increasing their productivity and efficiency. The focus on risk management, particularly related to climate change and market unpredictability, will help farmers build resilience. Additionally, the emphasis on sustainable farming practices will ensure that agricultural operations are both environmentally friendly and economically viable in the long run.
Yushida Husin, CEO of CGC Digital, said, “At CGC Digital, we are committed to tackling Malaysia’s food security challenge. Through our partnership with Funding Societies and FarmByte, we aim to close the funding gap for local farmers, providing them with the financial resources they need to thrive. Using farming data as an alternative credit scoring metric will improve the accuracy of credit assessments and create a more inclusive financial ecosystem for agricultural MSMEs.”
Strengthening the Agricultural Sector
Wong Kah Meng, Group Chief Operating Officer of Funding Societies, emphasized, “This collaboration reflects our shared vision of empowering underserved businesses across Malaysia. By combining CGC Digital’s credit enhancement expertise with Funding Societies’ digital financing platform, and leveraging FarmByte’s agricultural ecosystem, we can offer farmers and agribusinesses greater access to the capital they need to scale their operations, create jobs, and contribute to economic growth. This partnership not only strengthens the agricultural value chain but also supports Malaysia’s food security and economic resilience.”
Syed Aiman Kifli Syed Jaafar, CEO of FarmByte, added, “Our goal is to revolutionize farming by providing farmers with both financial and technological resources. This collaboration allows us to bridge the financing gap and support MSMEs in agriculture, helping them grow their businesses and increase productivity. By combining financial access with technological insights, we aim to build a more resilient and sustainable agrofood ecosystem.”
A Unified Approach to Empower MSMEs
Through this MoU, CGC Digital, Funding Societies, and FarmByte will leverage their combined expertise to provide tailored financing solutions for agricultural MSMEs. CGC Digital will focus on mitigating risks by utilizing farm-level data to enhance credit evaluations, enabling data-driven lending. Funding Societies will offer fast, flexible funding solutions based on alternative credit assessments, while FarmByte will provide valuable farm-level insights to further improve risk evaluation and financial inclusion for the sector.
