Fefifo collaborates with PayNet to improve incomes, advance digital payments inclusion for farmers in Malaysia

• Collaboration helps strengthen Malaysia’s food security priorities
• Aims to support B40 farmers to become digitally savvy rural entrepreneurs

AgriTech startup, Fefifo announced that online applications have opened for eligible farmers from B40 communities in Malaysia to undergo its Farmer Digitalisation Programme, powered by Payments Network Malaysia (PayNet) digital payments and using Fefifo’s Magic Bean app.

The programme is part of a strategic collaboration forged with PayNet, the national payments network and central financial infrastructure provider, formalised in November 2023. This collaboration includes:

• Support for Fefifo to nurture B40 farmers to become digitally savvy rural agropreneurs
• Incentives, training, and programme sponsorships from PayNet for farmers in the B40 community who are in Fefifo’s Farmer Digitalisation Program to adopt cashless payments
• Support from PayNet to lower the cost of operating Fefifo cashless distribution centers, maintaining a logistics fleet that transports farm produce for sale to Fefifo’s network of offtakers

Fefifo’s Farmer Digitalisation Programme is catered for the digitalisation of smallholder farmers so that they can produce quality food crops by providing a comprehensive value chain solution via Fefifo’s proprietary mobile platform “Magic Bean”. These solutions include MyGAP-certified step-by-step, on-demand digital farming SOPs, agronomic expert support, lower priced key agri-inputs, guaranteed 100% offtake, and access to financing facilities. 

It has been designed to help smallholder farmers achieve sustainable livelihood by growing quality crops more consistently for a ready offtake.

Leveraging Fefifo’s expertise in food crops know-how, proprietary digital farming platforms, complimented by PayNet’s broad network of ecosystem participants and range of digital payment products and services, this synergistic collaboration helps to strengthen the national food security priorities, increase local food production, and reduce reliance on imported food, in support of National Agrofood Policy 2021-2030.

Kelveen Soh, co-founder of Fefifo stated that this sponsorship helps farmers as a kick-starter financial support by subsidising the initial cost of seeds and nutrients required at the start of a crop growing cycle. “Small farmers in our network appreciate this help to start a new cycle of growing, on top of all the other benefits and value that comes with being a part of our fast-growing network of farms and farmers,” he added.

Among the earliest beneficiaries is FELDA second-generation settler, Muhamad Hafizam Rasidi, who has undergone a three-month on-the-job training at Fefifo Co-farm in Perak since December 2023 and is now back in his village in Pahang onboarding other interested farmers. 

“I used to grow lemongrass on my family farm. Income was uncertain, due to price and harvest. I heard that chilies yield better harvest and steadier income if grown using proper techniques. Then I was introduced to Fefifo and decided to try. It has been a good experience, learning hands-on how to grow chili at commercial scale,” he added. 

“I look forward to returning to my kampung to get others to join this programme. The modern methods and digital SOPs in Fefifo’s mobile app Magic Bean and ongoing support makes it easy for me to change to this new way of farming. I also don’t need to worry about sales because Fefifo takes care of it. Everything is fully cashless and received immediately,” Hafizam said.

With the help of PayNet, sponsorships will be provided to up to 100 B40 farmers to join the programme, and several distribution centres will be established throughout the country in the coming months to be closer to rural farmers under the programme to send their produce to Fefifo and be paid digitally. In addition, PayNet has also funneled potential additional cohorts from its other ESG initiatives. They include graduating university students from the B40 communities who are returning to their hometowns to start their own social enterprises, one from a public university in Pahang and another, in Johor. Also in the pipeline are cohorts from B40 communities in Sabah from another PayNet-supported fintech.

Azleena Idris, senior director and head of the Strategy & ESG Office at PayNet stated that this programme is an extension of the firm’s PayNet Cambah programme which aims to create virtuous cycles of sustainable, cashless-enabled communities and the first in AgriTech. “It has the potential to truly transform and revolutionise the agriculture sector, enabling innovative yet practical application of technology for small farmers to earn more from improved farming techniques, lower cost of production and assured returns. They no longer need to worry about handling cash or payment delays because everything is cashless and credited to their accounts directly,” she added. 

“Apart from Fefifo, PayNet is also working with public sector bodies, NGOs, start-ups, fintechs and local entrepreneurs to advance cashless payments integration and equip these target segments with digital literacy skills. To reap the benefits of the digital economy for these segments at an accelerated pace, working together collaboratively is key,” Azleena said.

To date, the Farmer Digitalisation Programme has already garnered interest from participating ecosystem partners and communities throughout Negeri Sembilan, Pahang, Perak and Selangor and is expected to further expand to Johor, Penang, Kedah and Sabah in the near future. Various discussions with government agencies and local communities for large-scale participation, including with the DOA of Penang, the Malaysian Communications & Multimedia Commission and other local co-operatives. 

To know more about the program details, please visit www.fefifo.co/fdp. All online applications will be followed by an in-person verification process by Fefifo program advisors to evaluate the applicant and the existing farm conditions.