Waiver of settlers' loans impacted Felda's cash flow, says Idris

KUALA LUMPUR: The waiver of Felda settlers’ loans worth some RM8.3bil completed in 2021 has had a major impact on Felda's cash flow.

Felda chairman Tan Sri Idris Jusoh said that after settling part of the debt out of a total amount of RM12.1bil, Felda was unable to carry out a second waiver.

"Repayment of the remaining loans will now continue as per the waiver agreement to ensure the survival of the organisation and enable Felda to continue to look after the welfare of the settlers," he said in a statement on Friday (Feb 25).

At the same time, he said the government remains committed to helping settlers and is implementing various initiatives to boost settlers' income and ensure their debt does not accumulate further.

"This commitment is proven when in 2022, the average productivity of settler smallholdings increased to 19.43 tonnes per hectare per year compared to 17.29 tonnes per hectare per year, representing an increase of more than 12 per cent.

"This in turn would be able to provide higher income returns to Felda settlers,” he said.

Idris was responding to Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said’s written reply in Parliament that government will discontinue the waiver of Felda settlers’ loans to improve Felda’s cash flow. - Bernama