Govt aims to cut Felda debts to RM6.8bil by year-end

Economic Affairs Minister Datuk Seri Azmin Ali. – Bernama

KUALA LUMPUR: The government aims to reduce the Federal Land Development Authority’s (Felda) debts by 15 per cent to RM6.8 billion by the end of this year, said Minister of Economic Affairs, Datuk Seri Mohamed Azmin Ali.  

The plan to improve Felda’s cash flow situation was part of its newly-installed Board of Director’s main priorities, he said during a question-and-answer session at Dewan Rakyat today.

“They have already met with the financial institutions concerned to restructure Felda’s loans,” Mohamed Azmin said, adding, the cash flow situation was also affected by the lower crude palm oil prices.

Additionally, the minister said Felda was also in the midst of looking at offloading its non-strategic assets such as real estate properties in London, Sabah and Sarawak, purchased at a cost of RM2.2 billion.

“This way, Felda will be able to meet part of its commitment to 112,635 settlers,” he said.

He was replying to a question from Hassan Abdul Karim (PH-Pasir Gudang) on Felda’s cash flow situation and the government’s efforts in ensuring the settlers’ wellbeing.

Mohamed Azmin said the steps taken by the government and Felda’s Board of Directors were expected to improve the cash flow situation in the next two years.

“The issue and the steps taken to improve Felda’s financial management and its governance will be presented in detail in the White Paper which is about to be completed and will be presented in this Parliamentary session,” he said.

Mohamed Azmin said the government believed that this would help to reveal the actual situation and identify the steps to improve it.

“This will also help the government to formulate an appropriate comprehensive recovery action plan that will directly benefit Felda and the settlers,” he added. - Bernama