KUALA LUMPUR: Agrobank has rolled out its national paddy takaful scheme (Skim Takaful Tanaman Padi – STTP) in Sabah, expanding financial safety nets for the state’s farming community.
Deputy Minister of Agriculture and Food Security Datuk Arthur Joseph Kurup said that as of 30 April, 5,642 paddy farmers in Sabah had enrolled in the scheme. However, more than 19,000 remain unregistered, including 6,602 individuals without Agrobank accounts.
STTP offers affordable crop insurance at RM64.80 per hectare per season, a cost currently subsidised by the federal government. Farmers are encouraged to register early to avoid missing out on protection, especially in the face of climate-related risks.
Nationwide, STTP has disbursed RM16.2 million in compensation as of March 2025, aiding 6,319 farmers impacted by agricultural disasters.
“The launch of STTP in Sabah reflects Agrobank’s commitment to providing inclusive and comprehensive financial solutions for Malaysia’s agri-food sector,” said Kurup.
The Ministry of Agriculture and Food Security (KPKM) also lauded the Sabah government’s formation of the Sabah Paddy and Rice Board (LPBS), calling it a key move in enhancing the sector’s competitiveness, organisation, and sustainability.
The initiative aligns with Malaysia’s broader strategy to secure food resilience and fortify the agro-food value chain.
