Fintech intervention in micro financing in agriculture sector in Malaysia

Ahmad Zairy Zainol Abidin, . and Mohd Tarmizi Haimid, . and Hairazi Rahim@ Abdul Rahim, . and Syahrin Suhaimee, . and Siti Zahrah Ponari, . and Farith Fariq Hashim, . and Nuruddin Mohamad Isa, . and Wan Nur Izzaty Wan Izanni, . (2024) Fintech intervention in micro financing in agriculture sector in Malaysia. Economic and Technology Management Review, 23. pp. 47-61. ISSN 1823-8149

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Abstract

The agricultural sector in Malaysia faces significant challenges in accessing f inancing, largely due to the stringent requirements of traditional banking systems. This study proposes a Fintech peer-to-peer (P2P) lending model system as an innovative solution to bridge this gap, aims to overcome these barriers by offering three types of investment portfolios: financial capital, agricultural inputs and technology. The involvement of service providers is crucial, acting as intermediaries to ensure smooth transactions between investors and farmers. Additionally, the model emphasises the importance of deferred returns, aligning with the agricultural cycle, and incorporates agricultural insurance to protect against potential risks such as crop failure or natural disasters. The government’s role is highlighted as critical in establishing supportive policies and providing regulatory oversight to safeguard the system against misuse. The study also underscores the need for increased farmer education on the benefits and processes of alternative financing options like Fintech P2P lending. While the proposed model offers a promising pathway to enhance financial inclusion for farmers, its success hinges on robust collaboration between government agencies, service providers, and the farming community. Further research is required to optimise the model and ensure its effective implementation in the Malaysian agricultural landscape.

Item Type:	Article
Creators:	Ahmad Zairy Zainol Abidin, . and Mohd Tarmizi Haimid, . and Hairazi Rahim@ Abdul Rahim, . and Syahrin Suhaimee, . and Siti Zahrah Ponari, . and Farith Fariq Hashim, . and Nuruddin Mohamad Isa, . and Wan Nur Izzaty Wan Izanni, .
Title:	Fintech intervention in micro financing in agriculture sector in Malaysia
Date:	2024
Location:	Economic and Technology Management Review website
Publication:	Malaysian Agricultural Research and Development Institute
Volume:	23
Physical Description:	16p.
Agency Name:	Universiti Putra Malaysia (UPM)
Date Deposited:	02 Oct 2025 02:47
Last Modified:	02 Oct 2025 02:47
URI:	http://myagric.upm.edu.my/id/eprint/23684

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