BEAUFORT: The debts for land development under Felcra Bhd’s Consolidation and Rehabilitation projects that are categorised as less viable should be written off in stages over a period of five years, says Datuk Seri Dr Ahmad Zahid Hamidi.
The Deputy Prime Minister, who is also the Rural and Regional Development Minister, said the implementation of the debt write-off would depend on Felcra’s financial position, which must remain stable.
He explained that although Felcra is a corporate entity under the Minister of Finance Incorporated, his ministry is fully responsible for ensuring that the agency is well-managed and continues to benefit settlers across the country.
“We know Felcra was established to help the people, especially smallholders, by consolidating their efforts and enabling them to prosper together.
“When I was given this responsibility, the focus was not only on Felcra’s profits, but also on the overall welfare and benefits for its settlers.
“So, I agree with the request to write off the debt in stages,” he said at the Felcra Madani Santuni Rakyat @ Lumadan programme at Dataran Bagandang here yesterday, Bernama reported.
Also present was Felcra chairman Datuk Seri Ahmad Jazlan Yaakub.
Ahmad Zahid also issued a stern reminder to Felcra’s management not to burden settlers with outstanding debts arising from losses caused by reduced production and the operational challenges faced by the agency.
He noted that Felcra’s restructuring and organisational transformation place strong emphasis on the welfare of settlers, while ensuring they receive fair and sustainable returns.
Earlier, Ahmad Jazlan, in his speech, said the company was seeking approval for more than RM230mil in land development debt under the consolidation and rehabilitation project to be written off in stages over five years.
He said the issue could not be allowed to persist, as crop yields from participants in less viable areas were insufficient to cover management costs.
In another development, Ahmad Zahid said Sabah had been allocated several development projects under Felcra through Rolling Plan 1 of the 13th Malaysia Plan (13MP), amounting to nearly RM28mil up to 2026.
This includes RM20.42mil for the redevelopment of oil palm and rubber plantations; RM6.6mil for agricultural infrastructure; RM500,000 for plantation road upgrades; RM250,000 for village social amenities; and RM100,000 for the development of business premises.
He also stressed that Sabah is not just another state but rather a pillar of the nation’s economic strength and stability.
He described Sabah as a state with immense economic potential, but one that requires a more integrated approach to address fundamental issues involving roads, water and electricity.
He acknowledged the state government’s efforts and commitment in tackling these challenges, but stressed that further improvements to basic amenities are essential to ensure the well-being of the people and support more inclusive development.
