SERDANG – Prime Minister Datuk Seri Anwar Ibrahim announced several initiatives and incentives to improve the quality of life and preserve the welfare of Felda settlers, including providing infrastructure, healthcare, digitalisation, and housing.
Among the announcements made by Anwar was the Rahmah Health Contribution which involves an allocation of RM21.21 million, the construction of a hemodialysis centre with an allocation of RM21 million, expenses for the cost of operating street lights with financial implications of RM7.7 million per year, and a diesel subsidy of RM36 million a year for three Felda settlements in Sabah.
He also announced the Digital Madani programme to empower the gig economy, resolutions to issues with regard to the Felda New Generation Housing scheme, and efforts to help rubber smallholders switch to other commodity crops such as palm and coconut.
Anwar, who is also finance minister, also stated the unity government's commitment to dispose of a portion of settlers’ loans amounting to RM8.3 billion.
“We made a decision to reduce, not add to the burden of Felda folk. There are second, third, and fourth generations (of settlers that need to be taken care of),” he said at the Felda Settlers’ Day celebration here today.
Anwar also said the government has approved an annual allocation of up to RM1 billion for 10 years starting this year to ensure Felda’s survival.
He said the delay in fund distribution for the Felda sukuk loan previously was due to the government having to meet its commitment in stimulus package financing.
“In order to continue the sukuk financing which was delayed, I, with the cabinet’s backing, have approved funds of up to RM1 billion annually for 10 years to Felda.
“This is to ensure Felda’s survival as a large institution in the country,” he said.
On June 28, the government announced an agreement involving a government guarantee to restructure the agency’s loan via the issuance of sukuk and revolving credit as part of efforts to restore Felda’s financial position.
The major part of the restructuring of Felda’s loans is to reduce the principal of Felda's debt to financial institutions by RM7.9 billion.
It would also enable Felda to cancel 80% of the RM8.3 billion settlers’ debt.
Anwar said the federal government decided to abolish the settlers’ debt as it understands the challenges they face and wants to restore Felda’s standing. – Bernama, July 7, 2023
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