Groups hail RM100 million Felda allocation but call for clear mechanism

THE additional allocation of RM100 million for Felda to cover operating costs due to the targeted diesel subsidy is a good move but the money and information should go to the right people,
Pertubuhan Satu Silaturahim Anak Felda said.

Its chairman Yahya Zakaria told The Vibes that Putrajaya must come up with a clear mechanism on how the money would be channeled.

“The settlers who use lorries to transport their goods to factories are not eligible to get the Budi Madani scheme, so this additional allocation would help them,” Yahya said.

“But what kind of mechanism is being used, how long would they be getting this assistance, is it a one-off scheme or will it be continued for years to come?

“So there needs to be a clear understanding on this before we can say that the allocation (RM100 million) is beneficial to Felda settlers.

“On surface, it is a good initiative by the government so they need to make sure that the people understand it,” said Yahya.

In announcing the additional allocation, Prime Minister Datuk Seri Anwar Ibrahim said the assistance is meant for targeted groups in need, including smallholders.

“Considering the additional financial implications for Felda amounting to RM121.6 million per year due to the increase in diesel prices, the government will provide an additional subsidy allocation of around RM100 million to Felda to cover any increase in farm operating costs due to diesel,” Anwar had said during his speech at Felda Settlers’ Day 2024.

Anwar said this measure was taken to ensure that the income of Felda settlers is not affected in any way.

He also said the government might not fully understand the issues and challenges of individual groups, so they were invited to discuss their difficulties with the government.

The prime minister added the additional funding was announced after Felda chairman Ahmad Shabery Cheek highlighted the settlers’ hardships, caused by increased plantation operating costs due to the diesel subsidy rationalisation.

Persatuan Anak Peneroka Felda Kebangsaan (Anak) secretary Rauzan Esa said the allocation would definitely help settlers with transportation costs but also said a clear mechanism must be put in place so that the money would reach the right people in Felda.

“Felda settlers are not eligible to get the Budi Madani scheme, or the Budi Agri Komoditi scheme for farmers. So of course the allocation is going to help Felda settlers with their transportation expenses," Rauzan said.

“We now need a clear mechanism on how the money can be channeled."

Rauzan also thanked Shabery for his efforts in getting the second and third-generation Felda settlers to join the Felda Settlers’ day.

Putrajaya introduced the Bantuan Subsidi Madani (Budi Madani) programme to make diesel subsidies more targeted and efficient.

The Budi Madani programme, announced by the Finance Ministry, allows diesel subsidies to be distributed via two categories: Budi Individual and Budi Agri-Komoditi. The programme aims to provide targeted subsidies rather than blanket subsidies for all diesel users.

To be eligible for Budi Individual, applicants must be Malaysian citizens, own a non-luxury car irrespective of age or a luxury diesel vehicle that is more than 10 years old, have an active road tax, have an annual income of RM100,000 or below and pass a background check by the Inland Revenue Board.

For Budi Agri-Komoditi, applicants must be registered farmers or smallholders with relevant agencies with an annual turnover between RM50,000 and RM300,000.

Money should empower Felda economy

Mazlan Aliman said while the allocation would help settlers with the cost of transportation, it should also be channeled to low-income earners in Felda.

The Anak chairman said not all settlers, especially the second and third generation, who live in Felda have a steady income.

“Their income is not fixed. Some may have their own small business such as food hawker or a small sundry shop to make ends meet,” he said.

“I feel the allocation should also empower the economy of Felda settlers. Empower their entrepreneurship activities.

“We have Gerakan Perkumpulan Wanita. These women are running small businesses to empower their family, to help their husbands.

“If the money can reach groups like this, it would be better. Felda settlers need a stable income and with the allocation, other empowering programmes can be carried out,” Mazlan added. – July 18, 2024