Selangor: The Selangor Agricultural Development Corporation (PKPS) and Agrobank have entered into a strategic partnership through a RM200 million Trade Facility to strengthen the state's agri-food industry and food supply chain. The facility will support infrastructure development, working capital, and research and development (RandD) activities, including the development of the Selangor Halal Food Warehouse as a buffer stock to prepare for possible supply disruptions.
According to BERNAMA News Agency, PKPS Group chief executive officer Datuk Dr Mohamad Khairil Mohamad Razi stated that the facility would help accelerate efforts to increase Selangor's food self-sufficiency level (SSL) amid various challenges that could affect supplies. He emphasized the urgency of implementing such measures quickly in light of ongoing supply issues, the Strait of Hormuz situation, and the COVID-19 pandemic. The RM200 million facility will also support PKPS' SEED 2030 programme, one component of which is the Selangor Food Warehouse. This announcement was made during a press conference at the signing ceremony between PKPS and Agrobank, which included the presentation of a RM200 million mock cheque at the Malaysia Agriculture, Horticulture and Agrotourism Exhibition (MAHA) 2026.
The mock cheque was presented by Agrobank chief executive officer Tengku Datuk Ahmad Badli Shah Raja Hussin to Mohamad Khairil, representing PKPS, and was witnessed by Deputy Agriculture and Food Security Minister Datuk Chan Foong Hin. Mohamad Khairil elaborated that essential items such as rice, cooking oil, fish, chicken, and meat would be stored as buffer stocks in the Selangor Halal Food Warehouse to counteract supply disruptions during disasters or crises. The RM200 million will also be used to construct warehouse infrastructure, including cold rooms and storage facilities, which will be equipped with IoT and AI technologies.
Mohamad Khairil mentioned that the warehouse is expected to hold sufficient food stocks to support up to 50 percent of Selangor's population within two years. This facility will also enable PKPS to expand its agropreneur development programme by opening more land for technology-based agricultural projects. With Agrobank's support through this RM200 million facility, more land will be available for fertigation, IoT, and agropreneur programmes, allowing for more extensive and effective implementation.
Meanwhile, PKPS noted in a statement that the Trade Facility is scheduled to officially take effect from March 2027. It will support other key infrastructure projects, including the Ehsan Halal Chicken Processing Centre, Ehsan Product Processing Centre, and the construction and upgrading of central distribution warehouses to enhance food distribution across Selangor. The facility will also cover operations and high-impact RandD activities, such as developing ready-to-eat and ready-to-heat food products under the Ehsan brand, research at the Ehsan Agricultural Research Centre to advance smart farming, and human capital development through the Ehsan Agricultural Training Centre.
The collaboration further supports agro-tourism development at Ehsan Resort and Convention Centre, aligning with PKPS' efforts to expand activities and development opportunities across the agri-food sector.