Agro entrepreneurs who are already successful, but low in cash flow, now have the option to go for venture capital (VC) which was set up by the Sarawak government.
Deputy Chief Minister Datuk Amar Douglas Uggah said successful agropreneurs who had reached a higher level due to subsidy assistance, would not be given any more subsidy by the Sarawak government but would be eligible for financial assistance if needed.
“That is where the VC that is set up by the state government comes in and it is available for agropreneurs. It will be a lot easier than going to the bank because as you know the banks set a lot of terms and conditions. VC wants to relax the terms and conditions. It is not a loan but an equity participation and the agropreneur can actually sell back their shares to VC or we sell back the shares to him, which at the moment is ringgit to ringgit,” Uggah said.
He added that the allocation for the VC this year is estimated at RM200 million (€42.5 mln) and the idea of establishing the VC was mooted by Chief Minister Datuk Patinggi Abang Johari Tun Openg who wanted to move away from subsidy.
“In a way, the establishing of VC is more like trying to create young farmers to become entrepreneurs, to be good managers, to be able to manage their farm, growing big and that will increase their income, push them beyond poverty level and go to middle-class level,” he said.
Malaysia produces a lot of pineapples and the state government is focussing on expanding farming of the MD2 variety in view of the great demand. “With a vast opportunity in pineapple farming, the Sarawak government fully supports the development of pineapple industry in the state and hopes to expand pineapple farming to 3,500 hectares by 2020,” Uggah said.
Source: theborneopost.com
