Malaysia

FGV staff await management decision amid land dispute with state government

The workforce remains in a holding pattern, continuing with normal duties and awaiting formal instructions from senior management

Updated 8 months ago · Published on 05 Dec 2025 4:02PM

FGV staff await management decision amid land dispute with state government
The dispute stems from the state government issuing notices to FGV to vacate assets from 10 plantations covering roughly 15,000 hectares - December 5, 2025

STAFF at FGV Holdings Bhd (FGV) have expressed that they are leaving all decisions regarding their future and the company’s direction to management, as tensions continue over a long-standing land dispute with the state government.

One employee, speaking anonymously, said the workforce remains in a holding pattern, continuing with normal duties and awaiting formal instructions from senior management.

“Everyone is still busy moving oil palm trees from the plantation to other locations. For the moment, only the relocation of trees is ongoing, and other activities have ceased,” he said.

The worker explained that staff are being transferred to various FGV plantation sites, including in Gua Musang, Kelantan, and Pahang, as the company adapts to the evolving situation.

“We hope this issue can be resolved quickly between the state government, the Federal Land Development Authority (FELDA), and FGV. We hope this transfer is only temporary, and we can return to work here as usual,” he added.

The dispute stems from the state government issuing notices to FGV to vacate assets from 10 plantations covering roughly 15,000 hectares, following a long-standing disagreement over payments owed to the state for the use of land developed by FELDA over the past 40 years.

Media reports last Wednesday noted that FGV staff had begun removing assets from the plantations in anticipation of potential seizure by state authorities.

Datuk Dr Azman Ibrahim, Chairman of the State Committee on Agriculture, Agro-Based Industries, Food Security, and Commodities, confirmed that the process of seizing assets will proceed under Section 425 of the National Land Code (KTN) once the notices expire.

“The period of negotiation and mutual agreement between the state government and FELDA’s top management over this issue has concluded. FELDA previously failed to respond to claims for 30 percent of profits from state-owned land developed over the past 40 years,” he said.

Dr Azman, who also chairs the FELDA Land Resolution Task Force, noted that notices were issued simultaneously to management at the 10 plantations across Setiu, Besut, Kemaman, Marang, Dungun, and Hulu Terengganu, with signage posted at 127 land lots.

He added that face-to-face meetings had been held with FGV management and the Labour Department to discuss staff welfare amid the dispute. “During the meetings, we emphasised the state government’s stance prioritising the welfare of the workers,” he said.

The remedial period for asset removal under the Section 425 notices, originally set to end on 4 December 2025, has now been extended to 7 December 2025 to allow for further feedback and on-site considerations.

FGV staff continue to operate cautiously under management guidance as both sides work to resolve the protracted land dispute, balancing operational continuity with the legal requirements imposed by the state government. - December 5, 2025

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