Minister: Nafas announces 8pc dividend of National Farmers Fund

Agriculture and Food Industries Minister Datuk Seri Ronald Kiandee speaking at the Srikanda Muda Programme in Kuala Lumpur, April 23, 2021. — Bernama pic
Agriculture and Food Industries Minister Datuk Seri Ronald Kiandee speaking at the Srikanda Muda Programme in Kuala Lumpur, April 23, 2021. — Bernama pic

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PUTRAJAYA, Sept 10 — The National Farmers Organisation (Nafas) has announced the National Farmers Fund (DPK) dividend of eight per cent for the financial year ended Dec 31, 2020.

Agriculture and Food Industries Minister Datuk Seri Ronald Kiandee when announcing the matter today said the dividend distribution totalling RM7.6 million would involve 5,323 contributors.

He said the DPK had recorded a profit of RM9.05 million for the financial year ended Dec 31, 2020, compared to RM9.29 million in the previous year.

“Despite being a difficult year and market uncertainty due to the global Covid-19 pandemic, Nafas through the DPK had remained focused on financing strategy and diversification of the treasury portfolio to build resilience and provide encouraging returns to its members,” he said.

With more than a million farmers in the country, Ronald also expressed hope that more of them would invest in DPK to enjoy the various benefits while improving their local economy and boosting the agriculture sector as a whole.

“Although the majority of farmers have yet to participate in DPK, we do hope that the success stories created by DPK management in giving out a pretty hefty dividend each year will encourage more farmers to invest in DPK,” he said, adding that the current size of DPK is RM220 million.

The minister said among the benefits of participating in DPK is that the members could get funding for the purchase of machinery, opening of farms and petrol stations.

When asked about the decline of the dividend distribution from RM7.76 million in 2019 to RM7.6 million last year, Ronald said it was mainly caused by the global economic situation which was affected by the pandemic.

“Even though we are also affected by the same factor, DPK can still declare an eight per cent dividend for 2020 and this proves that the fund was very well-managed,” he said.

Meanwhile, Nafas general manager Abu Sujak Sahuji said Nafas planned to venture into new investment areas, including opening up an Ar-Rahnu business as it was expected to provide good returns.

“By the end of this year or next year, we will be more aggressive in making new local investments,” he said.

On new contributors for DPK, Abu Sujak said Nafas would intensify efforts to attract more contributors to reach the 10,000 from the current 5,323.

DPK was launched on Dec 17, 2012, to provide competitive financial services and mobilise funds to be distributed in the form of financing and joint venture investments to members and the Farmers’ Organisation network.

Among the projects financed by DPK are oil palm replanting, crop fertigation, purchase of machinery, opening of farms and petrol stations. — Bernama

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