FELDA ISSUES SUKUK, GOVT GUARANTEE REVOLVING CREDIT WORTH RM8.92 BLN UP TO SEPTEMBER 2025

KUALA LUMPUR, Nov 25 (Bernama) -- The Federal Land Development Authority (Felda) has issued government-guaranteed sukuk amounting to RM3.72 billion, and government-guarantee revolving credit-i (GGRC-i) totalling RM5.2 billion as of Sept 30, 2025.

Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi, who is also the Minister of Rural and Regional Development, said the total sukuk issued amounted to RM8.92 billion. “The maturity period for the GGRC-i is in June 2027,” he said in a written reply published on the parliament’s website on Tuesday.

He was responding to a question from Datuk Ku Abd Rahman Ku Ismail (PN-Kubang Pasu), who wanted to know the direction of FGV Holdings Bhd after its delisting and the terms imposed by the government on Felda regarding the loan used to purchase FGV shares.

Ahmad Zahid said that after FGV was delisted from Bursa Malaysia last August, its main direction is to restructure the company’s operations and organisation to become more efficient, competitive, and sustainable in the long term.

He said that as the largest shareholder, Felda will ensure FGV remains committed to generating sustainable cash flow, with consistent returns being channelled back to strengthen Felda’s financial position and safeguard the welfare of settlers.

In addition, consolidating FGV’s operations with Felda allows for economies of scale, particularly in the procurement of plantation inputs such as fertilisers, pesticides, and equipment, ultimately resulting in substantial cost savings that reduce the financial burden on plantations and settlers’ lots.

FGV is also focusing on expanding value-added downstream businesses such as oleochemicals, palm-based food products, biodiesel, and renewable energy. This move is expected to drive new growth and increase value-added contributions to the national economy.

-- BERNAMA