Zahid wants part of FGV-managed land returned to Felda to strengthen finances

MARAN, July 8 — Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi has proposed that a portion of the land currently managed by FGV Holdings Berhad (FGV) be returned to the Federal Land Development Authority (Felda).

Ahmad Zahid, who is also Minister of Rural and Regional Development, said the proposal is among measures aimed at strengthening Felda’s financial position.

“I am of the view that if the management of Felda plantations is restructured and handled by Felda itself, the process of settling debts can be accelerated.

“This step is also expected to provide better returns to the settlers,” he said at a press conference after the Felda Settlers’ Day and 70th Anniversary Celebration at the Tun Abdul Razak Stadium, Bandar Pusat Jengka, officiated by Prime Minister Datuk Seri Anwar Ibrahim here yesterday.

Meanwhile, he said the Prime Minister had informed that the Federal Government spends nearly RM1 billion annually to assist Felda, including for the welfare of settlers, and through these efforts, the agency is expected to take at least nine years to restore its financial position.

“I agree with the Prime Minister’s emphasis that priority must be given to the welfare of Felda settlers, covering the first, second and third generations,” he said.

Last Sunday, Anwar was reported as saying that the Federal Government has been forced to bear the burden of Felda's debt, which amounts to nearly RM1 billion annually, due to weaknesses in previous administrative management.

Meanwhile, Ahmad Zahid also said the government is assisting Koperasi Permodalan Felda (KPF) in restructuring several assets to enable the cooperative to repay its members’ share redemptions.

He said there are KPF members who wish to redeem their shares due to low dividend rates resulting from a downturn in the stock and property markets, and approximately RM350 million is required for this purpose.

“This restructuring is currently being carried out, particularly to help those who purchased KPF shares and had to take loans or sell their properties. As such, the restructuring that has been submitted to me will be implemented by no later than the end of this year,” he said. — Bernama