No decision yet on FGV LLA termination - Felda chairman

Chairman of Malaysian palm oil operator Federal Land Development Authority (Felda) Shahrir Samad speaks during an interview at his office in Felda Towers, Kuala Lumpur, Malaysia April 20, 2017. REUTERS/Emily Chow

KUALA LUMPUR: The Federal Land Development Authority (Felda) said it has not finalised any decision on terminating Felda Global Ventures Holdings Bhd’s (FGV) current land lease agreement (LLA).

Chairman Tan Sri Shahrir Abdul Samad said the matter was now under consideration as many facts and questions needed to be looked at and discussed.

“We have not made any decision yet and will continue negotiations with FGV on the approach that can assist in terms of increasing Felda’s income and earnings for the benefit of FGV itself, as we (Felda) are a major shareholder in FGV.

“We don’t have a date or timeline that we are working for because we have to refine this issue so that the benefits can be enjoyed by both Felda and FGV,” he said to the media after launching the D’Saji Ramadan Buffet preview in Kuala Lumpur on Thursday.

Shahrir said the matter was initially opened for discussions as Felda was looking at options of restructuring its business components including the LLA land in order to increase its sustainability and revenue.

Felda’s interest in FGV is about 34% and the latter managed around 335,000 hectares (ha) out of Felda’s total landbank of 850,000ha.

Meanwhile, in response to the DRB-Hicom Bhd partnership with Zhejiang Geely Holding Group Co Ltd (Geely) on Wednesday, Shahrir said changes and transformation in carmakers happened all around the world which included acquisition by foreign investors.

“If we look at Britain for instance, we see that companies that are not from the original country such as BMW had bought companies such as Rolls Royce and MINI...and Proton is also faced with that situation.

“Proton needs an investor with other facilities which must be present in the automotive industry, whether engine or huge market capability to generate earnings,” said Shahrir.

He said the negotiations between Proton and the companies involved were done by DRB-Hicom and not the Government.

He also said Proton was at one time at the top of the automotive industry in Malaysia and now at third place after Perodua and Honda, which was a sign for the strategic investor and Proton to correct the situation, including by looking at the export market.

“I’m sure Geely has its advantages and strength that can help and support Proton to achieve the financial and market performance that it wants.

“Volvo for example is still called a Swedish-made car but its owner and investor is a Chinese company (Geely) and Proton is also going through that situation,” he said. - Bernama