Zahid proposes returning portion of FGV-managed land to Felda

 The rural and regional development minister says this is aimed at strengthening Felda's financial position.

Deputy prime minister Ahmad Zahid Hamidi said the government is helping Koperasi Permodalan Felda restructure several assets to enable the cooperative to repay its members’ share redemptions. (Bernama pic)

PETALING JAYA:

Deputy prime minister Ahmad Zahid Hamidi has proposed that a portion of the land currently managed by FGV Holdings Bhd (FGV) be returned to Felda.

Zahid, who is also rural and regional development minister, said the proposal was among the 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 settling of debts can be accelerated.

“This is also expected to provide better returns to the settlers,” Bernama reported him as saying after the Felda Settlers’ Day and 70th anniversary celebration at Tun Abdul Razak Stadium in Bandar Pusat Jengka, Pahang, today.

Zahid said Felda is expected to take at least nine years to restore its financial position.

On Saturday, Prime Minister Anwar Ibrahim said the federal government was forced to bear the burden of Felda’s debt, which amounted to nearly RM1 billion annually, as a direct result of past administrative failures.

Zahid said the government is also helping Koperasi Permodalan Felda (KPF) restructure several assets to enable the cooperative to repay its members’ share redemptions.

He said nearly RM350 million was required to pay KPF members who wished to redeem their shares due to low dividend rates resulting from a downturn in the stock and property markets.

“This restructuring is being carried out to help those who purchased KPF shares and had to take loans or sell their properties. The restructuring will be implemented no later than the end of this year,” he said. - FMT