Keadilan continues with our analysis of the FGVH listing and its social and financial impact on settlers. FELDA on a yearly basis spends between RM400 to RM500 million on the welfare of the settlers.
The expenditure includes funds for infrastructure such as roads, mosques, housing, education, Hari Raya incentives and insurance. In 2011, FELDA spent RM424 million on settlers. However for 2012 FELDA intends to spend only RM326 million on settlers, a massive reduction of close to RM100 million.
Details of the reductions are as follows:
> Infrastructure development reduced by 57%.
> Youth and New Generation Development reduced by 27%.
> Productivity incentive for Settlers reduced by 22%.
> Hari Raya Bonus reduced by 25%.
> Insurance plan for settlers reduced by 25%.
The reason for this massive reduction is clear; after the FGVH lisitng, FELDA’s earnings have crashed. By leasing the 350,000 ha of land to FGVH, FELDA switched role, from a rich plantation operator to a mere landlord. The results are devastating to FELDA. In 2011, FELDA earned RM2.5 billion but for 2012, it only expects to earn RM900 million. In other words, the IPO of FGVH has caused FELDA earnings to crash by 64%.
All the above details are from the FELDA official Budget for 2012.
First we had the small unfair windfall, then the unfair allocation of shares to favour rich bumiputera, now settlers are again unfairly treated by a RM100 million reduction in welfare support.
WONG CHEN, CHAIRMAN, INVESTMENT & TRADE BUREAU
PARTI KEADILAN RAKYAT
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