Johor bahru: MBSB Bank Bhd has announced a structured financing facility amounting to RM95.8 million, earmarked for the development of Tier-1 dairy infrastructure by Jemaluang Dairy Valley Sdn Bhd.
According to BERNAMA News Agency, the financing package includes the acquisition of 1,000 high-yield A2 Jersey Friesian dairy cows and the establishment of a processing facility with a production capacity of up to 14 million litres of milk annually by 2027. Rafe Haneef, group chief executive officer of MBSB Bank, emphasized the significance of food security as a critical asset class necessitating substantial capital investment, as reflected in the bank's RM1 billion Agro-ESG mandate.
Rafe Haneef stated that the RM95.8 million facility is a commitment to anchor Johor's first fully integrated dairy ecosystem. The project aims to create a technology-enabled, environmental, social, and governance (ESG)-compliant infrastructure essential for enhancing Malaysia's domestic self-sufficiency in dairy production. Jemaluang Dairy represents a strategic joint venture between Kulim (Malaysia) Bhd and A2 Fresh Holdings Sdn Bhd.
The initiative directly addresses Malaysia's high reliance on imported dairy and supports the national agenda for food resilience by transforming the fragmented dairy landscape into a high-output, tech-driven industry. MBSB Bank highlighted that this endeavor aligns with Johor Corporation's (JCorp) mandate to industrialize Malaysia's agritech sector, positioning the East Coast Economic Region as a high-yield regional food hub.
Jemaluang Dairy chief executive officer Qasem Alhasan remarked that the project is designed as an end-to-end dairy ecosystem, integrating advanced farming technology with sustainable practices and local talent development. This approach aims to deliver high-quality, locally produced milk at scale, thereby supporting Malaysia's long-term food security objectives.
The initial introduction of 1,000 cattle began in November of the previous year, with plans to expand the herd to 4,000 cattle by the third year of operations. This expansion is part of a systematic and sustainable development phase.