Najib ups battle for farmer votes with aid
KUALA LUMPUR: Malaysian Prime Minister Najib Razak raised the stakes in his efforts to secure the votes of palm oil farmers, announcing hundreds of millions of dollars in aid ahead of an election that could come within months.
Farmers who come under the auspices of the Federal Land Development Authority, or Felda, will get cash handouts from the end of August, and have some debts erased, Mr Najib said in a speech on Sunday. The package, which includes grants for replanting, totals about 1.6 billion ringgit (12.5 billion baht).
Felda, the world’s largest crude palm oil producer, has been hit by financial scandals and the share price of its unit Felda Global Ventures Holdings Bhd has fallen, causing upset among farmers, long the mainstay of the ruling coalition. Many of them took out loans to buy Felda shares. They have also expressed frustration about late assistance payments from the state-backed company.
Mr Najib needs those farming votes if his coalition is to extend its 60-year grip on power. While the next election is not due until mid2018, politicians and analysts have indicated it could come by the end of this year as Mr Najib seeks to capitalise on an opposition in disarray.
Felda farmers make up the majority of voters in 54 out of 222 federal seats, and Mr Najib’s coalition, known as Barisan Nasional, won all but six of those seats in the 2013 election, according to a ruling party lawmaker.
Mr Najib highlighted the symbiotic relationship between the farmers and the government in a speech at the tail end of a three-day carnival for Felda families in Putrajaya, the country’s administrative capital. The families, known as settlers, were given land during Malaysia’s independence.
“Felda’s agenda is close to my heart,” Mr Najib said. “Without the Felda community, it’s not possible that Putrajaya would be held by the government.”
Felda traces its roots to a 1956 grant from the World Bank and is virtually synonymous with government aid to rural Malaysia. About 95,000 settlers will get 5,000 ringgit in cash, Mr Najib said, a move that will cost the government almost 475 million ringgit. He said about 986 million ringgit will be allocated to provide grants and forgive debt incurred during replanting activities.
FGV is about 62% below its listing price in 2012. Mr Najib said settlers who took loans to buy shares will see part of their outstanding debt forgiven. That is expected to total 128.1 million ringgit and benefit almost 78,000 farmers.