CGC Digital, Funding Societies | Modalku, and FarmByte have signed a Memorandum of Understanding (MoU) to improve access to financing for MSMEs in Malaysia’s agriculture sector.

The collaboration aims to address the financing gap hindering the growth of these businesses, which is crucial for the nation’s food security and economic stability.

Many agricultural MSMEs struggle to secure traditional loans due to a lack of collateral and financial literacy, while financial institutions often view the sector as high-risk due to climate change and market volatility.

This partnership seeks to overcome these challenges by leveraging the expertise of each organization.

CGC Digital will provide credit guarantees and enhance risk assessment by incorporating farm-level data into its models.

This data-driven approach will allow for more accurate credit evaluations, mitigating risks associated with lending to agricultural businesses and ultimately de-risking the sector for financial institutions.

Funding Societies will offer flexible financing solutions using alternative credit assessments, catering to underserved farmers and agribusinesses.

FarmByte will contribute farm-level data and insights to improve credit scoring and financial inclusion.

This enhanced risk assessment, fueled by farm-level data, will not only improve access to financing but also contribute to a more sustainable and resilient agricultural sector, bolstering Malaysia’s food security.

Yushida Husin, CEO of CGC Digital said,

“By collaborating with Funding Societies and FarmByte, we aim to close the funding gap and enable local farmers with financial access they need to thrive.

We believe that leveraging farming data as an alternative credit scoring metric will not only enhance the accuracy of credit assessments but also provide a more inclusive and supportive financial ecosystem for our agricultural MSMEs.”

Wong Kah Meng, Group Chief Operating Officer of Funding Societies, remarked,

“By integrating CGC Digital’s expertise in credit enhancement with Funding Societies’ advanced digital financing platform, on the back of Farmbyte’s agricultural ecosystem, we aim to empower farmers and agribusinesses with greater access to capital that they need to expand, create jobs, and drive economic progress.

This collaboration not only strengthens the agricultural value chain but contributes to food security and economic resilience in Malaysia.”

Featured image: (From left) Yushida Husin, CEO of CGC Digital, Wong Kah Meng, Group Chief Operating Officer of Funding Societies and Syed Aiman Kifli Syed Jaafar, Chief Executive Officer (CEO) of FarmByte