KUALA LUMPUR – Felda needs to strengthen its management and settlers have to work with the agency to ensure a sustainable future, said Minister in the Prime Minister’s Department Datuk Seri Mustapa Mohamed.
By improving its management, Felda is expected to realise its target of a palm oil extraction rate of up to 25% within two or three years, he said.
Mustapa stressed that the government wants settlers to work with the agency and for its management to improve, as this is among the terms and conditions being monitored.
“I know most settlers are grateful (for the partial waiver of legacy loans announced by Prime Minister Tan Sri Muhyiddin Yassin on Wednesday), and we want settlers, together with the Felda management, to accept the terms and conditions.
“The government wants to see Felda becoming more sustainable when its debt is lower,” he told an Agenda Awani programme titled “Felda Regeneration Initiative” last night.
He said settlers must be consistent in submitting their proceeds and be disciplined when it comes to repaying their loans, while farm management should be left to Felda.
“Before this, farms were managed by various parties. Felda believes that it is more capable of managing these farms, as there have been complaints about various practices and there is a lack of discipline.
“This debt reduction is conditional, which gives rise to the concept of working together with Felda. This part of the conditions that will be clarified by the management to settlers.”
The government has agreed to offset part of settlers’ loans amounting to RM8.3 billion through a conditional loan adjustment initiative aimed at helping settlers and their descendants return to Felda’s original purpose.
Muhyiddin said the conditional disposal includes the partial adjustment of the replanting loan balance as of December 31, 2019 amounting to RM8 billion, which will benefit 92,441 settlers, or 82% of the total 112,638. – Bernama, July 10, 2021
