THE Terengganu state government has accused FELDA of placing settlers in the middle of a commercial land dispute with FGV Holdings Berhad, with the state warning that the agency is effectively using them as “human shields.”
Terengganu State EXCO for Agriculture, Agro-based Industry, Food Security and Commodities Datuk Dr Azman Ibrahim said the controversy stems from FELDA’s management of commercial plantations on land that has not been gazetted under the 1960 Group Settlement Area Act (Akta GSA).
"Why does FELDA management want to drag settlers into a crisis of their own making? The settlers are not involved and not guilty in any way. This is not 'gentlemanly'. You are using settlers as human shields," he said in a Facebook post on Tuesday.
The dispute escalated after the Terengganu government issued a no-trespass notice last Sunday over 10 FELDA plantations covering about 15,000 hectares, after FELDA failed to respond to demands for 30 per cent of the revenue from land that has been cultivated by the state for 40 years.
Azman noted that the state had given FELDA a 40-day period to reply, including a final reminder signed by the state’s Director of Land and Mines, Datuk Tun Ahmad Faisal Tun Abdul Razak, to FELDA’s General Manager, Datuk Dr Suzana Idayu Wati Osman.
FELDA and FGV responded in a joint statement, asserting that the warning notices would not affect settlers’ operations or livelihoods, and that they could continue their daily activities as normal.
They emphasised that while the state holds authority over land management, the three-day period given in the notice to vacate or remove structures and crops was “tight and brief” for plantation operations.
The companies said they are conducting a comprehensive review of all documents, including historical records, land premium payments, ownership status, and development conditions, to resolve the dispute.
"This review is carried out carefully through a comprehensive land audit and cross-verification with state authorities to ensure accuracy and completeness of all information," the statement read.
Azman highlighted that the situation differs from settlers’ land, where grants have been issued and premiums and taxes paid.
"As an example, FELDA Selasih, opened in the early 1980s, had land grants resolved in 2003 under PAS administration. In 2022, the grants for second-generation settlers’ house plots were also completed. The record speaks for itself," he said.
FELDA and FGV stressed the commercial plantations are intended to generate income for community development, infrastructure, and socio-economic programmes for settlers.
"The plantation ecosystem, from palm fruit production to processing and sale via FGV, supports local employment, ancillary services and the wider industry supply chain," their recent statement added.
Both companies affirmed that all actions would comply with legal procedures to ensure transparency and fairness, while protecting the interests of 1,283 workers and the wider settler community.
"The welfare of FELDA and FGV employees, the interests of the settler community, and socio-economic stability remain our top priority in any process and resolution," the statement said. -December 3, 2025
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