Govt to inject RM6.23b into Felda
KUALA LUMPUR: A RM6.23 billion financial aid boost for Felda. That's what the Pakatan Harapan (PH) government has worked out to ensure the sustainability of the Federal Land Development Authority.
Economic Affairs Minister Datuk Seri Mohamed Azmin Ali, in tabling a White Paper - Towards the Sustainability of Felda - in the Dewan Rakyat, said the government has agreed to provide the money by way of grants, loans and government guarantees in stages in accordance with the needs of a new business model for the management of Felda.
He said the new model will see Felda inject new manpower and optimise its potential to progress and modernise the agricultural industry.
“Felda settlers, the Pakatan Harapan government has confidence in you. Let's rise together in unison and achieve progress for the glory of Felda, the people and the country. I am confident that Felda can bounce back,” he said.
Mohamed Azmin said the injection of the RM6.23 billion will involve, among others, a new model of settler land management for a reasonable long-term period that will solve the issue of settler demography and the absence of economies of scale.
“The introduction of this new model will allow the settlers' land to be combined and worked on efficiently on a large scale with the economies of scale that can reduce the operating cost and increase productivity,” he said.
He said Felda is committed to producing new settlers who are skilled and innovative to increase their income through agricultural and livestock activities that use new technologies such as smart farming and precision agriculture.
This effort will help the settlers to reduce their reliance on oil palm yield and the settlers can generate a high-value new income through harvesting in a short period of time.
“In order to implement this new idea, the government agrees to allocate RM1 billion over a period of four years,” he said.
Mohamed Azmin said the sophisticated asset management scheme (SAMC) would be introduced in order to provide a more flexible aid to replace the cost of living allowance and harvesting advance to ease the burden of settlers.
Through this new scheme, he said settlers would receive corresponding loans based on their income and the proposed new scheme was being scrutinised including involving the settlers.
‘'While this process is going on, Felda will continue to pay the cost of living allowance and harvesting advance under the existing rate.
‘'For 2019, the government has approved RM480 million to finance the cost of living allowance and harvesting advance,'' he said.