Kota Kinabalu: Agrobank has launched the paddy takaful scheme (STTP) in Sabah, aiming to expand financial protection for paddy farmers in the region. Deputy Minister of Agriculture and Food Security, Datuk Arthur Joseph Kurup, announced that as of April 30, 2025, 5,642 paddy farmers in Sabah have registered for and received STTP coverage.

According to BERNAMA News Agency, more than 19,000 farmers have yet to register for the scheme, including 6,602 individuals who do not currently have an Agrobank account. The scheme is offered at a contribution rate of RM64.80 per hectare per season, which is presently covered by the federal government.

Deputy Minister Kurup has encouraged unregistered farmers to sign up promptly to ensure they benefit from this protection. He further revealed that as of March 2025, RM16.2 million in compensation has been approved to assist 6,319 farmers nationwide who have been affected by disasters. The launch of the STTP in Sabah reflects Agrobank’s commitment to providing essential fin
ancial protection to farmers, acknowledging the challenges faced by the farming community.

The Ministry of Agriculture and Food Security (KPKM) has expressed support for the Sabah government’s initiative in establishing the Sabah Paddy and Rice Board (LPBS) as a strategic partner. This partnership is expected to enhance the management of the rice and paddy industry in Sabah, making it more organized, efficient, and competitive. This effort aligns with the ministry’s objectives to improve the nation’s food security and strengthen the agro-food value chain.