PM: Government to sell part of Felda settlers’ loans worth RM8.3 billion
KUALA LUMPUR: The government agreed to cede part of the Federal Land Development Authority (Felda) settler loans worth RM8.3 billion as part of a conditional loan adjustment initiative, a Prime Minister Tan Sri Muhyiddin Yassin said.
Muhyiddin added that the government had identified the loans as one of the main problems facing the settlers.
“The issue of loans must be addressed first to facilitate the process of revitalizing Felda,” he added in his inaugural Felda Settlers Day address, broadcast live on Facebook on Wednesday (July 7th).
With this initiative, Muhyiddin said that the burden of loans paid by each settler will be reduced by 80% on average.
“Average loan repayments are expected to be reduced to between RM800 and RM1,000 per month and between RM250 and RM300 for oil palm oil settlers.
For small rubber producers, it will go as low as RM 150 each, which is a reasonable and affordable rate for them, ”he said.
As part of the conditional loan adjustment, there will be a partial adjustment for the fiscal year balance of the RM 8 billion replant loan as of December 31, 2019, which will benefit a total of 92,441 settlers (or 82% of the 112,638 settlers).
There will also be a full adjustment of the loan balance of FGV Holdings Bhd shares up to 7% worth RM78 million, in July this year, which will involve a total of 38,043 settlers (34% ).
It will also include a full adjustment to the initial development crop loan balance of RM 56 million, as of December 31, 2019, which will benefit a total of 6,711 Felda settlers.
Muhyiddin said that with the efforts of the government, this will become a starting point or “reset button” for settlers across the country to focus more on increasing their income and income.
“This will allow them to be more financially prudent,” Muhyiddin said.
He hopes that with the signing of a new agreement with Felda as part of the Conditional Loan Adjustment Initiative, the settlers of Felda will remain committed to fulfilling any agreed conditions so that they jointly take responsibility for increase productivity and ensure the sustainability of Felda.
Muhyiddin also praised the Felda Settler Development Program (PPP), which was designed to encourage settlers to engage in entrepreneurship as well as a springboard for reforming Felda.
“I am convinced that the program will reduce dependence on the commodity price cycle and can diversify the source of income for Felda settlers.
“This new approach will make Felda an exemplary model for future rural development, in line with the Vision for Shared Prosperity 2030,” he said.
The Prime Minister said that Felda’s earlier successes have been recognized and have become a role model for many countries abroad.
“These successes include efforts to eradicate poverty, improve the country’s production of basic commodities and improve living standards, especially in rural areas,” he said.
He said that with the added benefit of having a land reserve of 832,000 ha or more than two million acres, Felda has the ability and potential to bounce back and become a leading plantation company in the world. .
“I would like Felda’s name to be on the list of the world’s most successful companies, including in the Fortune Global 500.
“I realize that it is not an easy task, but with the three-pronged strategy – restart, revitalize and reform – and with the commitment of the new management team as well as the support of the government, it is not is not something impossible to achieve, ”says Muhyiddin.