(From left) Yushida, Wong and and Syed Aiman during the signing of the Memorandum of Understanding between the parties in Kuala Lumpur.
KUALA LUMPUR: CGC Digital, Funding Societies | Modalku (Funding Societies) and FarmByte signed a Memorandum of Understanding (MoU) aimed at narrowing the financing gap for micro, small and medium enterprises (MSMEs) in the agriculture segment.
This strategic collaboration seeks to enhance access to financing and support the growth of agricultural businesses, thereby contributing to Malaysia's food security agenda and economic resilience.
The collaboration between CGC Digital, Funding Societies and FarmByte aims to have positive impact on local farmers.
By providing innovative financing options, local farmers, among others, will have better access to the capital needed for sustainable operations and business expansion.
CGC Digital chief executive officer Yushida Husin said, “At CGC Digital, we are deeply committed to supporting initiatives that address the critical issue of food security in Malaysia.
“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. This collaboration is a significant step towards building a resilient and sustainable agricultural sector that can meet the growing demands of our nation."
Funding Societies Malaysia group chief operating officer and chief executive officer Wong Kah Meng said, "This partnership with CGC Digital reflects our shared commitment to empowering underserved businesses across Malaysia.
“We strive to build a more inclusive financing ecosystem that fuels the growth of micro and small enterprises.
“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.”
FarmByte chief executive officer Syed Aiman Kifli Syed Jaafar said the partnership with CGC Digital and Funding Societies aligns with the company’s vision to revolutionise farming by providing farmers with both financial and technological resources.
“Our goal is to empower MSMEs in the agriculture sector with greater access to financing, enabling them to scale their businesses and enhance productivity,” he shared.
“Through this collaboration, we are bridging the financial gap and equipping agropreneurs with the resources and support needed to drive a more resilient and sustainable agrofood ecosystem.”
Through this MoU CGC Digital, Funding Societies and FarmByte will leverage their combined expertise to implement innovative financing solutions that address the unique needs of MSMEs in the agriculture sector.
CGC Digital will play the key role of mitigating risks as a leading credit guarantee provider and enhance its probability of default model with farm-level data as an alternative risk measurement for agribusinesses, thereby de-risking lending and improve access to financing through data-driven credit evaluations.
Funding Societies will provide fast, flexible funding solutions utilising alternative credit assessments to serve underserved farmers and agribusinesses that may lack traditional collateral.
FarmByte will contribute farm-level data and insights to enhance credit scoring models, improving risk evaluation and financial inclusion.
