WHITE PAPER ON FELDA RECOVERY
Govt identifies measures to manage Felda’s cash flow, debt, says minister
THE white paper on the Federal Land Development Authority (Felda), to be tabled in Dewan Rakyat, will provide details on how the government plans to turn the troubled plantation giant’s fortunes around.
Economic Affairs Minister Datuk Seri Azmin Ali said the government had identified measures to manage Felda’s cash flow and debt problem.
He said the turnaround plan would include how the government planned to reduce the RM8 billion debt it had chalked up as at June. “We will meet financial institutions to restructure the financing. We expect to reduce the debt to RM6.5 billion.”
Azmin said Felda would sell non-strategic assets, including properties in London and Sarawak.
“We expect to obtain about RM2 billion from this.” He said these measures would see the resolution of Felda’s debt and cash-flow crisis within two years.
He said the government hoped to reduce 15 per cent of Felda’s debt by December.
“We will table a detailed white paper on the steps taken (to improve) Felda’s cash flow and (plans for) its financial recovery in the current sitting.”
He said the government was confident that it had identified the steps needed to put Felda on the right path.
“We are looking at action plans to benefit settlers,” he said in reply to a question by Hassan Abdul Karim (PKR-Pasir Gudang).
Hassan had asked if there was truth to reports that Felda had a cash-flow problem and the steps taken to safeguard settlers’ wellbeing.
To a supplementary question by Tuan Ibrahim Tuan Man (Pas-Kubang Kerian) on why many settlers did not receive payments on time, Azmin said he was unaware of the matter, but would look into it.