A RM200mil trade facility has been established through a strategic partnership between the Selangor Agricultural Development Corporation (PKPS) and Agrobank to support infrastructure development, PKPS’ working capital needs and the state’s agrifood capacity, strengthening Selangor’s food supply chain.
As an initial step, the first project to be launched under this facility will be the construction of the Selangor halal food warehouse, which will function as a storage and logistics hub to support the state's food supply chain requirements.
The partnership was formalised in conjunction with the Malaysia Agriculture, Horticulture and Agrotourism Exhibition (MAHA) 2026, featuring a symbolic mock-cheque handover ceremony held during MAHA Go Global at the Malaysia Agro Exposition Park (MAEPS) Serdang on Aug 29.
The mock cheque was presented by Agrobank group president and chief executive officer Datuk Tengku Ahmad Badli Shah Raja Hussin to PKPS group chief executive officer Datuk Dr Mohamad Khairil Mohamad Razi, and witnessed by Deputy Agriculture and Food Security Minister Datuk Chan Foong Hin.
The trade facility will support project financing as well as PKPS’s working capital needs, and is scheduled to officially come into effect in March 2027.
The utilisation of the facility will follow standard operating procedures with disbursements made based on project progress to ensure cash flow for each project is managed in an orderly, controlled and transparent manner throughout the partnership period.
The facility will also support other key infrastructure developments, including a halal chicken processing centre, an Ehsan product processing centre, and the construction and upgrading of central distribution warehouses to enhance food distribution capabilities across all districts in Selangor.
In addition to infrastructure development, the RM200mil trade facility commitment encompasses operational requirements and high-impact research and development (R&D) activities.
These include the ready-to-eat and ready-to-heat food products under the Ehsan brand, the operation of the Ehsan Agricultural Research Centre to intensify smart agriculture research, and human capital development via the Ehsan Agricultural Training Centre.
This collaboration also supports the development of agritourism at the Ehsan Resort and Convention Centre, aligning with PKPS’s efforts to expand activities and development potential across the agrifood sector.
The strategic partnership between PKPS and Agrobank aligns with the theme of MAHA 2026, "Value Creation for Food Security", by focusing on sustainable investment, technological modernisation, and the strengthening of capacity and working capital from production to market distribution.
Through this partnership, PKPS continues to reinforce state agrifood infrastructure and capacity to support a more efficient, resilient and sustainable food supply chain, thereby contributing to efforts to meet Selangor’s future food security requirements.
