KUALA LUMPUR: Felda said it is unable to waive outstanding loans for its settlers for a second time due to concerns that it would severely impact its cash flow.
Its chairman Tan Sri Idris Jusoh said this was because Felda had in 2021 waived a significant portion of its settlers' loans, amounting to RM8.3 billion, from a total of RM12.1 billion.
He said the decision on the loans waiver was never cancelled by any government administration, including the present unity government.
He said as such, all settlers who had signed the loan waiver have already enjoyed the benefits, with repayments at a far lower rate.
"The repayments will be continued as per the agreement in order to ensure the sustainability of the organisation and enable Felda to care for the welfare of settlers.
"The government, through Felda, remains committed to helping settlers and is now implementing various initiatives to boost their income level and ensure that their debts remain at a manageable level.
"This commitment was evident as seen from the average productivity level of settlers, which rose to 19.43 tonnes a year in 2022, compared to 17.29 tonnes per hectare previously, representing a more than 12 per cent rise," he said in a statement today. - NST
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