DEBTS FOR FELCRA'S LESS VIABLE LAND CONSOLIDATION, REHABILITATION PROJECTS TO BE WRITTEN OFF IN STAGES - AHMAD ZAHID

BEAUFORT,  Nov 26 (Bernama) -- Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi has agreed that the debts for land development under Felcra Berhad’s (Felcra) Consolidation and Rehabilitation projects that are categorised as less viable projects nationwide be written off in stages over a period of five years.

Zahid, who is also the Minister of Rural and Regional Development (KKDW), said the implementation of the debt write-off, however, would depend on Felcra’s financial position, which must remain stable from year to year.

He explained that although Felcra is a corporate entity under the Minister of Finance Incorporated, KKDW is fully responsible for ensuring that the agency is well-managed and continues to benefit settlers across the country.

bootstrap slideshow

“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 today.

Also present was Felcra Berhad 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 RM230 million in land development debt under Felcra’s Consolidation and Rehabilitation project to be written off in stages over five years, subject to the company’s financial capacity.

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 RM28 million up to 2026.

This includes RM20.42 million for the redevelopment of oil palm and rubber plantations; RM6.6 million for agricultural infrastructure; RM500,000 for plantation road upgrades; RM250,000 for village social amenities; and RM100,000 for the development of business premises.

As for the Felcra MADANI Santuni Rakyat @ Lumadan programme, more than 1,200 local residents attended the event, which reflects the federal government’s and Felcra Berhad’s ongoing commitment to uplifting rural communities, particularly in Sabah.

The programme also reaffirmed Felcra’s intention to remain a strategic partner to the people of Sabah in advancing inclusive, progressive and sustainable rural development.

-- BERNAMA