Felda incurs RM2b in unrealised losses from FGV direct stake
KUALA LUMPUR: The Federal Land Development Authority (Felda) has incurred unrealised losses of RM2.06 billion from its 21.25 per cent direct stake in Felda Global Ventures Holdings Bhd (FGV).
Deputy Minister in the Prime Minister’s Department Datuk Razali Ibrahim said the losses as of June 30 were not recorded in Felda’s financial statements as FGV was classified as an associate of Felda.
“This is in line with MFRS 128: Investments in Associates and Joint Ventures.
“Felda’s holdings in FGV is recorded as an ‘investment in associate’, where FGV is recorded at a cost of RM3.38 billion in Felda’s financial statement for the year ending Dec 31, 2016.
“FGV has paid RM328.33 million to Felda as dividend on FGV holdings.”
Felda, Razali said, had a total stake of 33.67 per cent in FGV, including indirect holdings of 12.42 per cent, held via its whollyowned subsidiary Felda Asset Holdings Company Sdn Bhd.
Razali said this in a written reply to Dr Ko Chung Sen (DAP-Kampar) in Parliament yesterday.
Ko had asked the prime minister to state the amount Felda had invested in FGV and Felda Investment Corporation Sdn Bhd (FIC), the value of the investment and the total profit or losses.
As of June 30, Razali said, FIC, a wholly-owned subsidiary of Felda, had been given a capital injection of RM500 million.
He said the government had no plans to privatise FGV as it was listed on Bursa Malaysia and subject to the regulation of the Securities Commission.